Fidelity Investments, the American financial services giant, recently published the (2025 Market Outlook Report) through its subsidiary Fidelity Digital Asset Services, believing that Bitcoin will step onto the international mainstream stage this year, not only attracting more institutional attention but also welcoming more 'national-level buyers' into the market, and optimistically expecting that the 'Bitcoin adoption rate will continue to rise' is just around the corner.
Analyst Matt Hogan wrote in the report: 'We expect that this year, more and more countries, central banks, sovereign wealth funds, and government finance departments will begin to plan for Bitcoin as a strategic reserve asset.'
Against the backdrop of rising inflation, continuous currency depreciation, and persistently high global fiscal deficits, the report points out that for countries around the world, the risk of 'not including Bitcoin in asset allocation' may be higher than the risk of 'holding Bitcoin.'
Former U.S. President Donald Trump and Senator Cynthia Lummis have previously expressed public support for establishing a U.S. 'Bitcoin Strategic Reserve'. However, Fidelity also emphasized that whether these two political figures will implement related plans in 2025 remains to be observed.
(The Bitcoin Act) is expected to trigger an international chain reaction.
In July 2024, Cynthia Lummis introduced the (Bitcoin Act of 2024) to the Senate. Fidelity believes that if the bill is successfully passed, it will not only lay an important foundation for U.S. cryptocurrency policy but may also trigger a chain reaction internationally. Under the influence of 'game theory' at the financial and political levels, other countries may be forced to follow suit to avoid falling behind in global competition.
Additionally, Fidelity also mentioned that if 'national-level buyers' start accumulating Bitcoin, they are likely to choose to do so discreetly to avoid triggering panic buying in the market after news becomes public, further driving up Bitcoin prices and increasing their own purchase costs.
So far, the United States, China, the United Kingdom, Ukraine, Bhutan, and El Salvador are the countries with the largest Bitcoin holdings globally. However, the report points out that most of these countries' Bitcoin has come from law enforcement seizures rather than active purchases.
In addition to the entry of national-level buyers, Fidelity also expects a massive expansion in the broader cryptocurrency sector. The report primarily outlines three major trends:
1. National adoption of Bitcoin: Inspired by precedents set by Bhutan and El Salvador, more countries may incorporate Bitcoin into their national strategic reserves. This strategy is seen as a proactive measure against inflation, currency depreciation, and fiscal challenges.
2. Tokenization: Tokenization is expected to fundamentally change the financial landscape by 2025, with the on-chain value of tokenized assets projected to double from $14 billion in 2024 to $30 billion by 2025. This involves representing real-world assets on the blockchain, thereby improving the efficiency, liquidity, and accessibility of the financial system.
3. Digital asset products: The report anticipates that structured digital asset products, including Bitcoin and Ethereum spot ETFs, will receive widespread attention. It is also expected that actively managed funds and customized digital asset portfolios will become increasingly common, further stimulating interest in cryptocurrency products among institutional and retail investors.
Bhutan's 'Mindfulness City' will include BTC, ETH, and BNB in its strategic reserves, writing a new chapter for the crypto economy.
"Confident that 'national-level buyers' will enter the market! Fidelity: This year is expected to trigger a 'Bitcoin buying frenzy.'" This article was first published on (Block Tempo).
