According to a new research report by Fidelity, 2025 could be the year that central banks and sovereign governments worldwide are starting to buy Bitcoin(Crypto: BTC). That is a significant change, given how much money could flow to it Bitcoin.
In fact, the amount of money flowing into Bitcoin could even surpass the amount that has already arrived through the new Spot Bitcoin ETFS. If that is the case, then Bitcoin could skyrocket in value. But how likely is this scenario? Let's look closer.
It may not be surprising what led to this recent development of central banks and sovereign governments buying Bitcoin: a proposed US Government plan to launch a strategic Bitcoin Reserve. Although the US Government is already the largest Bitcoin sovereign site in the world, there has never been any formal strategy in place to procure crypto. Creating a strategic bitcoin reserve would change that.
Image source: Getty images.
According to the Bitcoin Act 2024, the United States could buy as many as a million bitcoins over a five -year period. That equates to 5% of the total supply circulating from Bitcoin. That would basically make the United States a Bitcoin Jyggernaut.
And estimates are even more aggressive for how much Bitcoin the US could buy. During the 2024 presidential election, the then candidate Robert F. Kennedy, JR (currently nominated to be the Secretary of the US Health and Human Services) proposed that the US should buy 550 bitcoins daily until it have accumulated a total of 4 million bitcoins. That scale of buying bitcoin, of course, is completely unprecedented.
But just remember: there is no clear template for the United States to follow, and no one is even sure whether this strategic bitcoin fund will ever be created. Already, the Trump administration seems to be supporting away from characterizing this as a “Bitcoin reserve,” and instead refer to it as a “national digital asset stock pile.” That suggests that other digital currencies could be added to the mixture.
Where things become interesting is when you consider what potential impact the creation of this strategic bitcoin fund could have on other nations. If the United States – the largest highest economic power in the world – buys Bitcoin, then other nations may have to do so as well. Alternatively, they may be left behind. Faithfulness refers to this as “the theory of political and economic game,” but long -lasting crypto investors know what this really is: fomo, or the fear of losing out.
Currently, the best example of a nation that strategically purchases significant amounts of bitcoin is El Salvador. He officially made Bitcoin Legal Tender in 2021, and has been buying Bitcoin aggressively ever since. According to Fidelity, it currently has 6,000 bitcoins worth an estimated $ 600 million.
That may sound like a lot of bitcoin, but one company in the US – Microstratics – holds much more than that. In January 2025, microstration hosted 471,170 bitcoins. And the US Government has, simply as a result of forfeiture of assets and seizures, 198,000 bitcoins. If the United States progresses with plans for a strategic bitcoin reserve, it could buy 200,000 bitcoins in a single year!
Keep your eye, too, on what is happening in Europe. In early February, the head of the Czech Republic's central bank suggested that he could start buying Bitcoin. The current proposal is to buy $ 7 billion worth of Bitcoin, equivalent to approximately 5% of Czech National Bank International Reserves. If that scheme moves forward, it could lead to other European nations buying Bitcoin.
The suggestion that Bitcoin may double in value as a result of all this new purchase from central banks and sovereign governments sound, well, far -reaching. Fair enough. But consider what happened with the new Bitcoin ETFs, and what impact they had on the price of Bitcoin.
In just one year, these Spot Bitcoin ETFs accumulated about $ 100 billion in controlled assets. If we make a $ 100,000 price for bitcoin, that equates to about 1 million bitcoins. That 1 million bitcoin figure should sound familiar – that's exactly the same amount of Bitcoin as the US Government intends to buy for its strategic bitcoin reserve.
And we all saw what happened when so much bought Bitcoin. As soon as the Smot launched Bitcoin ETFS, the price of Bitcoin did skyrocketed 122%. Bitcoin literally doubled in price, from $ 44,000 in January 2024 to over $ 100,000 by December.
You can see where I'm going with this – central bank trend and sovereign governments buying Bitcoin could be much more than anyone thinks. It could literally be a game changer to crypto. The rules of the world financial regime would change, creating a completely new game. The winner, of course, will be the nation that owns the most Bitcoin.
Before you buy stock in Bitcoin, consider this:
The Motley Fool's Stock Advisor The analyst's team noted what they believe is 10 best stock For investors to buy now … and Bitcoin was not one of them. The 10 stocks that made the cut could produce monster gains in the coming years.
Consider when Nvid He made this list on April 15, 2005 … If you invested $ 1,000 at the time of our recommendation, you would have $ 795,728!*
Now, it's worth notingStock AdvisorTotal average earnings is926%-Market performance that exploits performance compared to175%For the S&P 500. Don't miss the latest top 10 list.
