The post Fidelity Expects More Nation-States, Central Banks To Buy Bitcoin In 2025 appeared first on Coinpedia Fintech News
Fidelity, in its latest report has asserted that Countries are expected to add Bitcoin into national strategic reserves in 2025, kicking off significant growth in the crypto market.
“We anticipate more nation-states, central banks, sovereign wealth funds, and government treasuries will look to establish strategic positions in Bitcoin,” noted Fidelity Digital Assets research analyst Matt Hogan.
The report noted that these establishments will likely observe the strategies used by Bhutan and El Salvador, citing the significant returns they have gained in a short period. It also noted that with the rising inflation, currency debasement, and surging fiscal deficits, not making an allocation to bitcoin could be more risky than making one.
It also stated that while both President-elect Donald Trump and Senator Cynthia Lummis have been vocal about establishing a strategic bitcoin reserve in the United States, it remains to be seen if they follow through with this plan in 2025.
Notably, in July, Senator Lummis introduced the “Bitcoin Act of 2024” to the Senate. According to Fidelity, if the bill is passed, it could create political and financial pressure on other nations to adopt similar measures.
If nation-states were to start accumulating Bitcoin, they would likely do so quietly, as publicly announcing their plans could prompt other investors to buy BTC, driving up the price, it mentioned.
The U.S., China, U.K., Ukraine, Bhutan, and El Salvador are currently the largest government holders of bitcoin, the report said. It noted that many of these counties have only gained exposure from government seizures and the recovery of bitcoin associated with criminal activities.
