According to a new Fidelity Research Report, 2025 years could be a year for central banks and sovereign governments around the world start buying Bitcoin(Crypto: BTC). This is a significant change given how much money can flow Bitcoin.
In fact, the amount of money entering Bitcoin can even surpass the amount already arrived by the new Spot Bitcoin ETFS. If this is the case, then Bitcoin could jump abruptly. But how probably is this scenario? Let’s look closer.
It may not be surprised that this recent development of central banks and sovereign government that buy Bitcoin: the proposed plan of the US Government to launch a Bitcoin strategic reserve. Although the US government is already classified as the largest sovereign bearer of bitcoin in the world, there has never been any formal strategy to acquire cryptocurrencies. Creating a strategic reserve Bitcoin would change.
Picture source: Getty Images.
According to the Bitcoin Law of 2024, they could now buy as many as one million bitcoins over a five-year period. This is an equivalent of 5% of the total circulating supply of bitcoin. That, basically, would make the now Bitcoin Juggernaut.
And there are even more aggressive estimates how much bitcoin could buy the US. During the 2024 presidential election, then candidate Robert F. Kennedy, Jr. (Currently nominated for the US Secretary of Health and Human Services) has suggested that the US buy 550 bitcoin every day until a total of 4 million bitcoins gather. This scale of Bitcoin’s shopping, of course, is a completely unprecedented.
But just keep in mind: there is no clear template that will follow now, and no one is even sure if this Bitcoin Strategic Reserve will ever be created. Trump’s administration seems to move away from the characterization as the “Bitcoin Reserve”, and instead is called “national stock of digital assets”. This suggests that other digital currencies can be added to the mix.
Where things have become interesting when you think about what a potential impact on creating this strategic reserve Bitcoin can have on other countries. If the United States – the largest economic superpower in the world – are buying bitcoin, other countries may have to be. Otherwise they could be behind. Fidelity calls it “the theory of political and economic games”, but longtime crypto investors know what it really is: Fomo, or the fear of missing.
Currently, the best example of a nation is strategically buying significant amounts of Bitcoin El Salvador. He officially made Bitcoin legal tender 2021, and since then he has been aggressively buying Bitcoin. According to Fidelity, he currently holds 6,000 bitcoins worth around $ 600 million.
That could sound like a lot of bitcoin but one US company – Micro -zone – Keep much more than that. Since January 2025. Microstrategy held 471,170 Bitcoin. And the US government, simply as a result of the seizure of property and seizures, holds 198,000 bitcoin. If now they move forward with plans for strategic Bitcoin reserve, they may buy 200,000 bitcoins in one year!
Keep your eyes to what is happening in Europe. In early February, the Central Bank chief of the Czech Republic suggested that she could start buying Bitcoin. The current proposal is to buy Bitcoin worth $ 7 billion, which is an equivalent of about 5% of the International Czech National Bank reserves. If that plan moves forward, it could lead to other European nations buy Bitcoin.
The proposal that Bitcoin could double the value as a result of all these new purchases by central banks and sovereign governments might sound, well, pleased. Fair enough. But think about what happened to the new Spot Bitcoin ETF and what impact it had on the price of bitcoin.
In just one year, these Spot Bitcoin ETF has collected about $ 100 billion in the management property. If we assume that the price of $ 100,000 is USD for Bitcoin, it is an equivalent of approximately one million bitcoin. That one million bitcoin character should sound familiar – this is the exact same amount of bitcoin that the US government plans to buy for its strategic reserve Bitcoin.
And we all saw what happened when so many bitcoin shopping happened. As soon as the new Spot Bitcoin ETFS was launched, Bitcoin’s price jumped abruptly by 122%. Bitcoin literally doubled in the price, of $ 44,000 in January 2024 at over $ 100,000 until December.
You can see where I go with that – the trend of central banks and sovereign government that BUBLIIN BUY could be much bigger than anyone thinks. This could literally be an exchanger to cryptocurrencies. The rules of the global financial order would change, creating a brand new game. The winner, of course, will be a nation that owns the most bitcoin.
Before you buy stock in Bitcoin, think about this:
AND Motley Fool Stock Advisor A team of analysts has just identified what they believe they are 10 of the best stocks That investors could buy now … and Bitcoin was not one of them. 10 stocks that made the cut could bring a monster return in the coming years.
Consider when Nvidia I made this list on April 15. 2005. … If you invested $ 1,000 at the time of our recommendation, you would have $ 795,728!*
It’s worth noting nowStock advisorThe total average refund is926%of the market of market compared to175%For S & P 500. Don’t miss the latest top 10 list.