Fidelity Digital Assets predicts that 2025 will be a huge year for Bitcoin. They believe that governments and countries adopting Bitcoin will be a major reason for its growth.
Governments Going Crypto
2024 saw some big moves for Bitcoin, like the SEC approving Bitcoin ETFs in the US and speculation about a potential US Bitcoin reserve after the election. Fidelity’s report, “2025 Look Ahead,” suggests that with Bitcoin ETFs now available to everyone, countries will be the next big adopters.
They think that many countries, central banks, and government funds will start buying Bitcoin. They might even copy El Salvador and Bhutan, who’ve seen good returns on their Bitcoin investments. Basically, governments getting into Bitcoin could make it much more mainstream.
Why Governments Should Invest (According to Fidelity)
Fidelity analyst Matt Hogan says that countries might lose more by not investing in Bitcoin than by investing. He points to things like high inflation and budget problems as reasons why Bitcoin could be a smart move. He also mentions a US bill (the Bitcoin Act of 2024) that suggests creating a national Bitcoin reserve. Whether this happens under the Trump administration is still up in the air, but it could pressure other countries to follow suit.
Interestingly, countries might keep their Bitcoin purchases secret to avoid driving up the price.
Who’s Next?
El Salvador and Bhutan aren’t alone. Brazil is looking at adding Bitcoin to its national treasury. Other countries like Chile, Canada, and the Czech Republic are also considering it.
At the time of writing, Bitcoin is trading around $94,190.
