According to a new research report from Fidelity, 2025 could be the year when central banks and sovereign governments around the world begin purchasing Bitcoin (Cryptography: BTC). That’s a huge change when you consider how much money will flow into Bitcoin.
In fact, the amount that flows into Bitcoin could even exceed the amount already arrived via the new spot Bitcoin ETF. In that case, Bitcoin could skyrocket in value. But how likely is this scenario? Let’s take a closer look.
It is probably not surprising that central banks and sovereign governments have led to this recent development of purchasing Bitcoin. This is a proposed plan for the US government to launch a strategic Bitcoin Reserve. The US government is already ranked as the world’s largest Bitcoin sovereign, but there was never a formal strategy to obtain a code. The creation of a strategic Bitcoin reserve will change that.
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According to the 2024 Bitcoin Act, the US was able to purchase up to 1 million Bitcoin in five years. This corresponds to 5% of the total circular supply of Bitcoin. It would essentially make the US a bitcoin juggernaut.
And there is even more aggressive estimates about how much bitcoin the US can buy. In the 2024 presidential election, then-Robert F. Kennedy Jr. (now appointed secretary to the US Department of Health and Human Services) would see the US purchase of 550 Bitcoins every day until a total of 4 million people accumulate. I proposed. Bitcoin. Of course, the scale of Bitcoin purchases is completely unprecedented.
However, please be aware. There is no clear template for the US to follow. No one is really sure if this strategic Bitcoin reserve will be created. Already, the Trump administration appears to be moving away from characterizing it as a “Bitcoin reserve,” and instead calls it the “national digital asset reserve.” This suggests that other digital currencies could be added to the mix.
It’s where things become an interesting place when you consider the potential impact this strategic Bitcoin reserve creation has on other countries. If the US (the world’s largest economic superpower) is buying Bitcoin, other countries may have to do the same. Otherwise they could be left behind. Fidelity calls this “political and economic game theory,” but longtime crypto investors know what this really is: FOMO, or the fear of missing out.
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Currently, the best example of a country that strategically purchases large quantities of Bitcoin is El Salvador. It legally officially created Bitcoin in 2021 and has been actively purchasing Bitcoin ever since. According to Fidelity, it currently holds 6,000 Bitcoin worth an estimated $600 million.
It may sound like a lot of Bitcoin, but a single US company – a micro-strategy – holds more than that. As of January 2025, MicroStrategy had held 471,170 Bitcoins. And the US government holds 198,000 bitcoins simply as a result of assets confiscation and seizures. If the US moves forward with its strategic Bitcoin reserve plan, it could potentially buy 200,000 Bitcoin in a year!
Keep an eye on what’s going on in Europe too. In early February, the head of the Czech Republic’s central bank suggested that it could begin purchasing Bitcoin. The current proposal is to buy $7 billion worth of Bitcoin, which is about 5% of the Czech National Bank’s international reserve. As the plan goes on, other European countries could potentially buy Bitcoin.
The suggestion that Bitcoin could double its value as a result of all this new purchase by the central bank and sovereign government may sound quite far apart. fair enough. But think about what happened with the new spot Bitcoin ETF and how they affected the price of Bitcoin.
In just a year, these spot Bitcoin ETFs have accumulated about $100 billion in assets under management. If you are expecting a price of $100,000 in Bitcoin, this is about 1 million Bitcoin. That one million Bitcoin figure should sound familiar – this is exactly the same bitcoin the US government plans to buy for its strategic Bitcoin reserve.
And we all saw what happened when the Bitcoin purchase happened. As soon as the new spot Bitcoin ETF was launched, Bitcoin prices skyrocketed by 122%. Bitcoin literally doubled from $44,000 in January 2024 at prices above $100,000 by December.
You can see where I go with this – the trends of central banks and sovereign governments to buy bitcoin can be much greater than anyone thinks. It could literally be a crypto game changer. The rules for global financial order will be changed and a whole new game will be created. Of course, the winner is the country that owns the most Bitcoin.
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Dominic Basulto has a position in Bitcoin. Motley Fool has a position and recommends Bitcoin. Motley Fools have a disclosure policy.
This recent development could be a game changer for Bitcoin.
