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coinpedia 2025-01-08 16:32:23

Fidelity Expects More Nation-States, Central Banks To Buy Bitcoin In 2025

The post Fidelity Expects More Nation-States, Central Banks To Buy Bitcoin In 2025 appeared first on Coinpedia Fintech News Fidelity, in its latest report has asserted that Countries are expected to add Bitcoin into national strategic reserves in 2025, kicking off significant growth in the crypto market. In its 2024 Look Ahead, the Fidelity Digital Assets Research team noted that investors should “prepare for acceleration” with “increased adoption, development, interest in, and demand for digital assets.” “We anticipate more nation-states, central banks, sovereign wealth funds, and government treasuries will look to establish strategic positions in Bitcoin,” noted Fidelity Digital Assets research analyst Matt Hogan. The report noted that these establishments will likely observe the strategies used by Bhutan and El Salvador, citing the significant returns they have gained in a short period. It also noted that with the rising inflation, currency debasement, and surging fiscal deficits, not making an allocation to bitcoin could be more risky than making one. The Strategic Bitcoin Reserve It also stated that while both President-elect Donald Trump and Senator Cynthia Lummis have been vocal about establishing a strategic bitcoin reserve in the United States, it remains to be seen if they follow through with this plan in 2025. Notably, in July, Senator Lummis introduced the “Bitcoin Act of 2024” to the Senate. According to Fidelity, if the bill is passed, it could create political and financial pressure on other nations to adopt similar measures. Nation-States To Secretly Pile Up BTC? If nation-states were to start accumulating Bitcoin, they would likely do so quietly, as publicly announcing their plans could prompt other investors to buy BTC, driving up the price, it mentioned. The U.S., China, U.K., Ukraine, Bhutan, and El Salvador are currently the largest government holders of bitcoin, the report said. It noted that many of these counties have only gained exposure from government seizures and the recovery of bitcoin associated with criminal activities. Tokenisation: The Killer App Of 2025 Hogan also predicted that tokenization will be the “killer app” of 2025, with onchain value doubling from $14 billion to $30 billion by the end of the year. “Tokenization is often seen as a buzzword in the world of blockchain technology, but its potential in financial services and beyond is only beginning to be realized,” he said. Investors Not Too Late It concluded by stating that investors are not too late to join the digital asset movement, but infact could be entering the dawn of a new era for digital assets, which is poised to span for multiple years. This era could see digital assets permeating various sectors- industries, technologies, fields, balance sheets and even nation-states.

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