“We expect more nation states, central banks, sovereign wealth funds, and government treasuries to seek to establish strategic positions in Bitcoin,” Matt Hogan, a research analyst at Fidelity Digital Assets, said in the firm’s Jan. 7 report titled “Outlook to 2025.”
He added that these institutions may take note of the strategies employed by Bhutan and El Salvador “and the strong returns they have reaped from those positions in a relatively short period of time.” With challenges such as inflation, currency devaluation, and growing fiscal deficits, not allocating Bitcoin may be more risky for the country than allocating Bitcoin.
If the U.S. moves forward with its Bitcoin Strategic Reserve plans, “it’s very likely that nation states will start secretly hoarding Bitcoin,” Hogan said. “No country has an incentive to announce these plans, as doing so could potentially reach more buyers and drive up the price.”

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