According to a new research report from Fidelity, the year could be the year in which central banks and sovereign governments all over the world could begin Bitcoin(Crypto: BTC). This is a significant change if you consider how much money could flow into Bitcoin.
In fact, the amount of money flowing into Bitcoin could even exceed the amount that has already come through the new Spot Bitcoin -Tfs. If this is the case, Bitcoin could increase value of increasing value ships. But how likely is this scenario? Let’s take a closer look.
It may not be a surprise of what has led to this recent development of central banks and sovereign governments that Bitcoin bought: a proposed plan by the US government to start a strategic Bitcoin reserve. While the US government is already the greatest sovereign owner of Bitcoin in the world, there has never been a formal strategy to acquire crypto. The creation of a strategic bitcoin reserve would change this.
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According to the 2024 Bitcoin Act, the United States could buy up to one million bitcoins over a period of five years. This corresponds to 5% of the total circulating Bitcoin offer. This would essentially make the United States a Bitcoin jet.
And there are still more aggressive estimates for how much Bitcoin the United States could buy. During the 2024 presidential election, the then candidate Robert F. Kennedy Jr. (currently nominated as a American health secretary and human service) suggested that the United States should buy 550 bitcoins every day until they collected a total of 4 million. This scale of the Bitcoin purchase is of course completely unprecedented.
But remember: there is no clear template for the USA, and nobody is really sure whether this strategic Bitcoin reserve will ever be created. The Trump administration already seems to prevent this from characterizing this as a “Bitcoin reserve”, and instead refers to it as a “national digital asset stock”. This indicates that other digital currencies could be added to the mix.
Where things become interesting is when you think about what potential effects the creation of this strategic bitcoin reserve could have on other nations. If the United States – the largest economic superpower in the world – buys Bitcoin, other nations must also. Otherwise they could be left behind. Fidelity describes this as “political and economic game theory”, but long -time crypto investors know what that really is: Fomo or the fear of missing it.
El Salvador is currently the best example of a nation that bought strategically significant amounts of Bitcoin. Bitcoin officially made it a legal offer in 2021 and has been buying Bitcoin aggressively since then. According to Fidelity, it currently holds 6,000 bitcoins worth an estimated 600 million US dollar.
That may sound like a lot of Bitcoin, but a single US company – Microstrategy – keeps much more than that. From January 2025, Microstrategy held 471,170 bitcoins. And the US government simply holds 198,000 bitcoins due to wealth losses and revenues. If the United States progresses with plans for a strategic Bitcoin reserve, it can buy 200,000 bitcoins in one year!
Also keep your eye on what happens in Europe. At the beginning of February, the head of the Czech Republic’s central bank proposed that it could buy Bitcoin. The current proposal is to buy Bitcoin worth 7 billion US dollars, which corresponds to around 5% of the international reserves of the Czech National Bank. If this plan progresses, it could cause other European nations to buy Bitcoin.
The proposal that Bitcoin could take advantage of all these new purchase by central banks and sovereign governments could sound well. Fair enough. But think about what happened to the new Spot -Bitcoin ETFs and what effects you had on the price of Bitcoin.
In just one year, these Spot -Bitcoin ETFs have accumulated around 100 billion US dollars of managed assets. If we accept a price of 100,000 US dollars for Bitcoin, this corresponds to around 1 million bitcoins. This 1 million -bitcoin number should be known -that is exactly the same amount of Bitcoin as the US government to buy for your strategic Bitcoin reserve.
And we have all seen what happened as so much purchase of Bitcoin. As soon as the new Spot -Bitcoin ETFS has started, the price for Bitcoin rose by 122%. Bitcoin literally doubled from $ 44,000 in January 2024 to over $ 100,000 in December.
You can see where I go – the trend of central banks and sovereign governments that Bitcoin buy could be much bigger than someone thinks. It could literally be a player for crypto. The rules of the global financial regulations would change and create a completely new game. The winner will of course be the nation that Bitcoin has.
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