According to a new research report issued by Fidelity, 2025 can be the year in which central banks and sovereign governments around the world begin to buy. Bitcoin(Crypto: BTC). This is a big change, given the amount of money that you may flow to Bitcoin.
In fact, the amount of money that flows to Bitcoin may exceed the amount that has already arrived over the new Bitcoin etfs spot. If this is the case, the value of bitcoin may rise in the value. But how much this scenario is likely? Let’s take a closer look.
Perhaps it is not surprising what led to this recent development of central banks and sovereign governments that buy Bitcoin: a proposed plan by the US government to launch Bitcoin strategic reserves. While the United States government is already classified as the largest sovereign holder of Bitcoin in the world, there was no official strategy at all to acquire encryption. The creation of strategic Bitcoin reserves will change this.
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According to the 2024 Bitcoin Law, the United States can buy up to one million Bitcoins over the period of five years. This is equivalent to 5 % of the total bitcoin offer. This, in essence, makes the United States from Bitcoin the tyrant.
There are more aggressive estimates of the amount of bitcoin that the United States may buy. During the 2024 presidential elections, then the candidate Robert F. proposed. Kennedy, the son (who was currently nominated to be the American Minister of Health and Humanitarian Services) that the United States buy 550 Bitcoin every day until a total of 4 million Bitcoin. This scale of bitcoin purchases, of course, is unprecedented.
But just keep in mind: there is no clear template for the United States, and no one is really sure whether this strategic Bitcoin reserves will be created. Indeed, the Trump administration appears to be back away from describing this as the “Bitcoin Reserve”, and instead it indicates it as “stored in national digital assets.” This indicates that other digital currencies can add this mix.
It becomes interesting when you think about the potential impact that may have this bitcoin strategic reserve on other countries. If the United States – the world’s largest economic power in the world – buys Bitcoin, other countries may also have to do so. Otherwise, they may leave behind them. Fidelity refers to this as “the theory of political and economic game”, but the long -term investors have really known what this really is: Fomo, or fear of losing it.
Currently, the best example of a nation that strategically buys large amounts of bitcoin is El Salvador. Bitcoin’s legal tender has made it officially in 2021, and has bought Bitcoin strongly since then. According to Fidelity, she currently has 6000 bitcoins at a value of $ 600 million.
This may seem like a lot of bitcoin, but one American company – Microstrategy – It holds much more. As of January 2025, Microstrategy 471,170 Bitcoins was held. The US government, simply as a result of the loss of assets and seizures, has 198,000 Bitcoin. If the United States advances forward with plans for the Bitcoin Strategic Reserve, it may buy 20000 Bitcoins in one year!
Keep your attention as well, what is happening in Europe. In early February, the head of the Central Bank of the Czech Republic suggested that he might start buying bitcoin. The current proposal is to buy Bitcoin worth $ 7 billion, which is equivalent to about 5 % of the international reserves of the Czech National Bank. If this plan advances forward, this may lead to the purchase of other European countries.
The proposal that Bitcoin may double the value as a result of all the new purchase by central banks and sovereign governments, well. fair enough. But consider what happened with the investment funds circulating in the new Bitcoin, and what its impact on the price of bitcoin.
In just one year, these Bitcoin’s investment funds accumulated by about $ 100 billion of management assets. If we assume a price of $ 100,000 for Bitcoin, this is equivalent to approximately one million bitcoin. This number of one million bitcoin should seem familiar – this is exactly the same amount of bitcoin that the United States government plans to purchase the Bitcoin strategic reserve.
We all saw what happened when a lot of bitcoin bought. Once the investment funds circulated in the new bitcoin are launched, the Bitcoin price increased by 122 %. Bitcoin literally doubled, from $ 44,000 in January 2024 to more than $ 100,000 by December.
You can see where I am going with this – the direction of central banks and sovereign governments that buy bitcoin may be much larger than anyone believes. It can be literally changing a game for encryption. The global financial system rules will change, creating a completely new game. The winner, of course, will be the nation that has the most bitcoin.
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