According to a new research report from Fidelity, 2025 could be the year that central banks and sovereign governments are starting to buy around the world Bitcoin(Crypto: BTC). That is an important change, considering how much money could flow into it Bitcoin.
In fact, the amount of money that flows in Bitcoin can even exceed the amount that has already been applied through the new Spot Bitcoin ETFs. If that is the case, Bitcoin can shoot up in value. But how likely is this scenario? Let’s look at it closer.
It may not be a surprise, which has led to this recent development of central banks and sovereign governments that buy Bitcoin: a proposed plan from the US government to launch a strategic Bitcoin reserve. Although the US government is already the largest sovereign holder of Bitcoin in the world, there has never been a formal strategy to acquire crypto. Creating a strategic Bitcoin reserve would change that.
Image source: Getty images.
According to the Bitcoin Act from 2024, the US could buy no less than one million bitcoins for a period of five years. This corresponds to 5% of the total circulating stock Bitcoin. That would essentially make the US a Bitcoin -Juggernaut.
And there are even more aggressive estimates for how much bitcoin the US could buy. During the presidential elections of 2024, the then candidate Robert F. Kennedy, Jr. (Currently nominated as the American Minister of Health and Human Services), that the US should buy 550 bitcoins each day until it had collected a total of 4 million bitcoins. That scale of Bitcoin purchases is of course completely unprecedented.
But keep in mind: there is no clear template for the US to follow, and no one is sure that this strategic Bitcoin reserve will ever be made. The Trump government already seems to be withdrawn from the characterization of this as a “Bitcoin reserve”, and instead refers it as a “National Digital Asset Stockpile”. This suggests that other digital currencies can be added to the mix.
Where things become interesting is when you consider which potential influence on creating this strategic Bitcoin reserve can have in other countries. If the United States – the largest economic super power in the world – buy Bitcoin, then other countries might have to. Otherwise they can stay behind. Fidelity refers to this as ‘political and economic game theory’, but long -term crypto investors know what this really is: Fomo, or the fear of missing.
At the moment El Salvador is the best example of a nation that buys strategically considerable quantities of Bitcoin. In 2021 it officially made Bitcoin legal means of payment and has since bought Bitcoin aggressively. According to Fidelity, it currently has 6,000 bitcoins worth an estimated $ 600 million.
That may sound like a lot of bitcoin, but a single American company – Micro strategy – contains much more than that. From January 2025, MicroSstratey had 471.170 bitcoins. And the US government, simply as a result of loss of assets and seizures, has 198,000 bitcoins. If the US continues with plans for a strategic Bitcoin reserve, it can buy 200,000 bitcoins in one year!
Also keep an eye on what is happening in Europe. At the beginning of February the head of the central bank of the Czech Republic suggested that the Bitcoin could buy. The current proposal is to buy $ 7 billion in Bitcoin, which corresponds to around 5% of the international reserves of the Czech National Bank. If that plan is progressing, this can cause other European countries to buy Bitcoin.
The suggestion that Bitcoin could in value double as a result of all these new purchases by central banks and sovereign governments, well, far -fetched. Reasonable. But consider what happened to the new place Bitcoin ETFs and what impact they had on the price of Bitcoin.
In just one year, this location collected Bitcoin ETFs around $ 100 billion in assets. If we accept a price of $ 100,000 for Bitcoin, it is equal to around 1 million bitcoins. That 1 million Bitcoin figure should sound known -that is exactly the same amount of bitcoin that the US government intends to buy for its strategic Bitcoin reserve.
And we all saw what happened when buying so much from Bitcoin took place. As soon as the new place Bitcoin ETFs was launched, the price of Bitcoin increased by 122%. Bitcoin literally doubled in price, from $ 44,000 in January 2024 to more than $ 100,000 in December.
You can see where I am going – the trend of central banks and sovereign governments that buy Bitcoin can be much larger than someone thinks. It can literally be a game exchanger for crypto. The rules of global financial order would change and create a whole new game. The winner will of course be the nation that has the most Bitcoin.
Consider this: Before buying stock in Bitcoin:
The Motley Fool Stock Advisor Analyst team has just identified what they believe are the 10 best shares For investors to buy now … and Bitcoin was not one of them. The 10 shares that made the cut can produce sample returns in the coming years.
Consider when Nvidia made this list on April 15, 2005 … If you have invested $ 1,000 at the time of our recommendation, You would have $ 795,728!**
Now it is worth mentioningInventorThe total average return is926%-A market-changing outperformance compared to175%For the S&P 500. Don’t miss the newest top 10 list.
