Norway’s central bank has built up over $500 million in indirect Bitcoin exposure through its investments in MicroStrategy and other crypto-focused companies. Research from K33 shows that Norway’s exposure to Bitcoin has nearly tripled in the past year as allocations to crypto-related firms have increased.
The country’s sovereign wealth fund, managed by Norges Bank Investment Management, holds 0.72% of MicroStrategy’s total shares, worth around $514 million as of December 2024. This translates to an indirect holding of roughly 3,214 Bitcoin. Alongside MicroStrategy, the fund also has investments in Tesla, Coinbase, Marathon Digital, Riot Platforms, and Metaplanet, adding another $61 million in exposure.
While Norges Bank’s strategy follows rule-based sector weighting rather than direct Bitcoin purchases, its growing involvement in crypto-linked firms signals increasing institutional acceptance of Bitcoin. Similar investment trends have been seen in Switzerland, where central banks have also allocated funds to MicroStrategy amid its expanding Bitcoin reserves.
Bitcoin experienced a 6% drop on 27 January, as stock markets reacted to the debut of China’s open-source AI model, DeepSeek, which some have dubbed ‘AI’s Sputnik moment.’ The new model developed on a modest budget of just under $6 million, raised concerns in US markets as it posed a competitive threat to American AI giants like OpenAI. The surprise launch led to significant losses across tech stocks, including Nvidia, Apple, and Tesla, with Nvidia seeing a record-breaking 17% drop. Energy stocks, which had relied on revenue from power-intensive US AI models like ChatGPT, also suffered.
While the impact on Bitcoin and other cryptocurrencies may seem directly linked to DeepSeek, experts suggest the broader market sentiment played a bigger role. Cryptocurrency, often seen as a “risk-on” asset, typically mirrors the movements in stock markets. As investor fears triggered sell-offs, major coins like Bitcoin and Ether saw their values fall alongside tech stocks. Despite the dip, some analysts remain optimistic, noting that Bitcoin’s quick recovery amidst a broader market decline signals positive prospects.
DeepSeek’s impact on Bitcoin, however, seems minimal in the long run. The open-source nature of the AI model allows others to incorporate its innovations into their own developments, potentially accelerating AI progress worldwide. While concerns about DeepSeek’s political and privacy implications linger, particularly in the US and EU, the model is expected to drive advancements in AI at a lower cost. Yet, its influence on crypto markets is likely to remain limited, with institutional investors continuing to view cryptocurrencies as a risk-heavy asset class.
The Czech National Bank (CNB) has revealed plans to assess the possibility of adding Bitcoin (BTC) to its reserve assets, despite opposition from European Central Bank (ECB) President Christine Lagarde. The decision follows a review of its 2024 reserve management strategy, where the CNB highlighted ongoing efforts to diversify its investments. While no immediate changes will be made, the central bank intends to conduct a thorough review before making any decisions.
Reports suggest the CNB could allocate up to 5% of its reserves to Bitcoin, amounting to over $7 billion. Governor Aleš Michl has expressed interest in Bitcoin as a potential diversification tool, calling it a “very interesting” asset. However, the ECB remains strongly opposed, with Lagarde insisting that central bank reserves must remain liquid and secure, free from concerns over money laundering or criminal activity.
The CNB’s exploration of Bitcoin aligns with a broader global trend of national reserves incorporating digital assets. In the US, former President Donald Trump recently signed an executive order allowing a crypto working group to study the potential for a national Bitcoin stockpile. With growing interest among G20 nations, the debate over Bitcoin’s role in central banking is far from over.
Donald Trump’s media company has launched Truth.Fi, a financial services platform aimed at cryptocurrency investments. The initiative, backed by Trump Media & Technology Group, will allocate up to $250 million from its $700 million cash reserves to assets like Bitcoin, crypto-related securities, and ETFs.
This move follows a trademark application last year and reports that Trump Media considered acquiring Bakkt, a licenced crypto service provider. Trump has also voiced support for World Liberty Financial, a decentralised finance protocol. Through his company, which operates Truth Social and various crypto assets, he has become the first US president with direct ties to the industry.
Crypto supporters see this as a potential boost for regulatory acceptance, while critics like Senator Elizabeth Warren have raised concerns over his crypto-linked associates. As Trump deepens his involvement in digital assets, the industry watches closely for signs of shifting policies in Washington.
Hong Kong’s Securities and Futures Commission (SFC) has awarded its first two crypto operational licences of 2025 to exchanges PantherTrade and YAX. These licences bring the total number of crypto licences issued since mid-2024 to seven, as Hong Kong continues its push to regulate the virtual asset industry.
Both exchanges were registered under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), marking a significant step in the city’s efforts to ensure secure crypto trading. The SFC has been focused on rigorous checks, including Know Your Customer (KYC) processes, asset safeguarding, and cybersecurity, to ensure high regulatory standards.
With Hong Kong aiming for a balanced approach, it has now formally licensed 10 exchanges since 2020, including four in December 2024. These measures are designed to protect investors while promoting growth in the digital asset sector.
Currently, only four cryptocurrencies—Bitcoin, Ether, Avalanche, and Chainlink—are legally available for trade in Hong Kong, highlighting the city’s cautious but forward-looking stance on crypto regulation.
El Salvador’s Congress has quickly approved a reform to its bitcoin law, aligning it with a recent agreement with the International Monetary Fund (IMF). The amendment, proposed by President Nayib Bukele and passed within minutes, makes bitcoin acceptance voluntary for businesses. Lawmakers from Bukele’s New Ideas Party, who hold a majority in Congress, ensured the bill’s swift passage.
Bitcoin was declared legal tender in El Salvador in 2021 alongside the US dollar, drawing international attention and strengthening Bukele’s reputation as a cryptocurrency advocate. However, an IMF-backed $1.4 billion loan deal, finalised in December, required limits on the government’s bitcoin exposure.
The lender specifically urged El Salvador to make bitcoin acceptance optional for the private sector, a key aspect of the newly approved law.
Ruling party lawmaker Elisa Rosales defended the reform, arguing it would secure bitcoin’s status as legal tender while ensuring its effective implementation. The law passed with 55 votes in favour and only two against.
Bukele’s government remains committed to bitcoin, recently confirming plans to continue acquiring the cryptocurrency for national reserves. Market optimism surrounding cryptocurrency policies under US President Donald Trump has contributed to bitcoin’s rising value.
Ripple CEO Brad Garlinghouse has called for a more inclusive approach to digital asset reserves, advocating for a US stockpile that represents a variety of cryptocurrencies rather than favouring a single token like Bitcoin or XRP. Highlighting the importance of a multichain ecosystem, he stressed the need for a level playing field in the crypto industry, stating, ‘Maximalism remains the enemy of crypto progress.’
Recent comments from US President Donald Trump have sparked discussions about a national digital asset reserve, an idea he supported before the election. However, market predictions suggest only a 17% chance of this initiative being authorised within Trump’s first 100 days in office.
Ripple’s XRP, used primarily for cross-border payments and remittances, remains integral to the company’s operations despite fluctuating values. On Monday, XRP traded at $2.65 following a brief spike to $3.09, reflecting the volatile nature of the cryptocurrency market.
The Czech National Bank is evaluating whether to include bitcoin in its reserves, Governor Aleš Michl revealed. No immediate decision is expected, but if approved, the bank could allocate up to 5% of its €140 billion reserves to the cryptocurrency.
Michl, who has focused on diversifying reserves since taking office in 2022, has already increased gold purchases and shifted investments toward equities. He plans to present the bitcoin proposal to the bank’s board, acknowledging the asset’s volatility as a key consideration.
While some central banks remain sceptical about bitcoin’s role as a reserve asset, growing institutional adoption has fuelled debate. The European Central Bank continues to reject bitcoin, likening it to speculative bubbles, while Switzerland has seen calls for its central bank to hold bitcoin alongside gold.
Interest in bitcoin has surged, with its value more than doubling in 2024. BlackRock’s bitcoin exchange-traded funds and the US government’s new cryptocurrency initiatives have contributed to its rise, making it an increasingly attractive option for investors.
Poland has expanded its Bitcoin ATM network to 219 machines, surpassing El Salvador to become the fifth-largest network globally, just behind the US, Canada, Australia, and Spain. The country added 10 new machines on 27 January, continuing its four-month spree of new installations, which began in October 2024. Meanwhile, El Salvador, which was one of the third-largest networks in October 2022, has not increased its Bitcoin ATM capacity.
Despite Poland’s growth, Salvadoran officials are focused on the broader adoption of Bitcoin. Juan Carlos Reyes, president of El Salvador’s National Commission of Digital Assets, explained that while Bitcoin ATMs provide a valuable service, they are becoming less essential due to the seamless integration of Bitcoin payments in daily life, reducing reliance on ATMs. He also pointed out that Bitcoin’s utility extends far beyond ATM transactions, giving citizens more options for everyday purchases.
Reyes further stressed the importance of balanced regulation for Bitcoin and crypto ATMs, particularly around concerns such as money laundering. He emphasised that Bitcoin’s traceable nature makes it fundamentally different from other digital assets, which should be considered when developing regulatory measures.
The global crypto ATM landscape now has around 38,100 machines spread across 65 countries. Notably, Australia has seen consistent growth and joined the US and Canada in surpassing 1,000 active Bitcoin ATMs.
Binance co-founder Changpeng ‘CZ’ Zhao has voiced strong support for government transparency, advocating for all public spending to be tracked on the blockchain. It comes after reports suggesting Elon Musk and the Department of Government Efficiency (DOGE) are exploring blockchain to improve fiscal accountability and address the federal deficit in the United States. In a post on 25 January, CZ argued that all government expenditures should be recorded on an immutable public ledger, stressing that “public spending” should be fully transparent.
The call for onchain tracking of government spending has sparked widespread debate online, particularly among advocates of small government and fiscal responsibility. Blockchain’s transparency could offer a solution to rising government debt and fiscal irresponsibility, as the immutable nature of the ledger would make it impossible to alter past transactions.
In light of the ongoing global fiscal challenges, including the US’s mounting $36 trillion national debt, CZ’s suggestion aligns with the broader discussion about the role of blockchain in promoting sound monetary and fiscal policies. Fixed-supply assets like Bitcoin are increasingly seen as a hedge against currency inflation, and some, including former President Trump, have suggested using Bitcoin to pay off national debt.
The idea of tracking government spending on the blockchain continues to gain traction as a potential method for increasing transparency and reducing inefficiencies within government finances.
