Fidelity claimed in its latest report that it expects countries to add Bitcoin to their national strategic reserves in 2025, marking the start of significant growth in the crypto market. In its 2024 Outlook, the Fidelity Digital Asset Research Team noted that investors need to “prepare for acceleration” due to “increased adoption, development, interest and demand for digital assets.”
“More nations, central banks, sovereign wealth funds and government treasuries will seek to establish a strategic position in Bitcoin,” said Matt Hogan, research analyst at Fidelity Digital Assets.
The report noted that these facilities are likely to adhere to the strategy adopted by Bhutan and El Salvador, citing the significant gains the latter have made in a short period of time. He also noted that not allocating to Bitcoin could be riskier than allocating it, given rising inflation, depreciating currencies, and surging fiscal deficits.
Strategic Bitcoin Reserve
He also said that while President-elect Donald Trump and Sen. Cynthia Lummis have been vocal about establishing a strategic Bitcoin reserve in the United States, it remains to be seen whether they will pursue this plan in 2025. Ta.
Notably, Senator Lummis introduced the Bitcoin Act of 2024 to the Senate in July. If passed, the bill could put political and financial pressure on other countries to take similar measures, according to Fidelity.
Are nation-states secretly accumulating BTC?
Even if nation-states were to start accumulating Bitcoin, they would likely do so quietly, since publicly announcing their plans could encourage other investors to buy Bitcoin, driving up the price. said the paper.
Currently, the largest government holdings of Bitcoin are in the United States, China, the United Kingdom, Ukraine, Bhutan, and El Salvador, according to the report. He noted that many of these counties have only been exposed through government seizures and recoveries of Bitcoin related to criminal activity.
Tokenization: The killer app of 2025
Hogan also predicted that tokenization will be the “killer app” of 2025, with on-chain 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 other sectors is only just beginning to be realized,” he said.
It’s not too late for investors
The report concludes that it is not too late for investors to join the digital asset movement, and that we may in fact be entering the dawn of a new era of digital assets, with a multi-year outlook. He concluded by saying that there is. In this era, digital assets have the potential to permeate various sectors, including industries, technologies, sectors, balance sheets, and even nation-states.
