A recent research report from Fidelity suggests that 2025 could mark a turning point for Bitcoin, as central banks and sovereign governments begin to accumulate the cryptocurrency. This development could significantly increase the value of Bitcoin as large-scale institutional investments flow into the market.
The United States is moving towards a national Bitcoin reserve
A major catalyst for this change is a proposed initiative by the US government to establish a national reserve of digital assets. The initiative, originally framed as a “strategic Bitcoin reserve” under the BITCOIN Act of 2024, aims to acquire up to one million Bitcoins over five years. This would represent approximately 5% of the total circulating supply of Bitcoin, cementing the United States as a dominant player in the crypto space.
There have even been more ambitious proposals. During the 2024 presidential campaign, Robert F. Kennedy Jr., now nominated for US Secretary of Health and Human Services, suggested that the government should buy 550 Bitcoins daily until it accumulated four million Bitcoins. If executed, this level of investment would be unprecedented in the cryptocurrency market.
However, the Trump administration recently changed its language, referring to the initiative as a “national digital asset reserve” rather than a Bitcoin reserve. This change suggests that other digital assets may also be included in government holdings.
Global domino effect: governments and banks enter the Bitcoin market
If the United States, one of the world’s leading economic superpowers, starts acquiring Bitcoin, other nations may follow suit. Fidelity describes this scenario as “political and economic game theory,” but in the cryptocurrency world it is known as FOMO (fear of missing out).
One country that is already investing aggressively in Bitcoin is El Salvador. After adopting Bitcoin as legal tender in 2021, the nation has continued to increase its holdings and currently holds approximately 6,000 Bitcoins worth around $600 million.
Comparatively, private sector entities own a significantly larger amount. MicroStrategy, a US-based company, owns 471,170 Bitcoins as of early 2025. Meanwhile, the US government, through asset seizures and seizures, owns 198,000 Bitcoins. If the United States follows through with its strategic plan, it could purchase an additional 200,000 Bitcoins in just one year.
Europe is also seeing growing interest. In early February, the Czech Republic’s central bank floated the idea of buying Bitcoin, with a proposal to invest $7 billion, roughly 5% of its total international reserves. If approved, this measure could encourage other European nations to follow suit.
Could Bitcoin’s value double?
The idea that Bitcoin could double in value based on institutional and government investments may seem ambitious, but recent trends suggest it is possible. The launch of Bitcoin spot ETFs offers a case study in how large capital inflows can affect prices. In one year, Bitcoin spot ETFs have accumulated approximately $100 billion in assets, which translates to approximately one million Bitcoins if traded at $100,000 per coin.
This is the same amount of Bitcoin that the US government plans to acquire under its proposed initiative. When the new Bitcoin ETFs hit the market, the price of Bitcoin increased by 122%, rising from $44,000 in January 2024 to over $100,000 in December.
If central banks and sovereign governments start investing heavily in Bitcoin, the effects could be even more dramatic. This change has the potential to reshape the global financial system, making Bitcoin a central asset in international reserves.
Also read: Why every investor should own at least $2,500 in Bitcoin