According to a report by Fidelity Digital Assets, the country’s growth and government acceptance of Bitcoin (BTC) will be one of the biggest factors driving the growth of the premier cryptocurrency in 2025. The report notes that 2025 will be an important year for BTC adoption.
Nation-State Adoption Making Bitcoin the Best
Bitcoin adoption has seen major developments in 2024, from the first US approval of BTC exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC) at the beginning of the year, to the possible prediction of a possible Bitcoin reserve strategies following the pro- crypto presidential candidate Donald Trump to win the November election.
A new report by Fidelity Digital Assets, titled “2025 Look Ahead,” suggests that as both retail and institutional investors gain exposure to BTC through ETFs, the next wave of adoption will likely come from the states. The report says:
We expect 2025 to be the year this changes in both adoption and adoption. This means that, we expect many countries, central banks, private wealth funds, and government treasuries will look to establish strategic positions in bitcoin. Perhaps these institutions will take note of the playbook employed by Bhutan and El Salvador, and the huge returns they have been able to get from these positions in a relatively short period of time.
In fact, the adoption of BTC by governments and states around the world could be the main driver that propels the main digital asset to be adopted by 2025. According to Matt Hogan, Research Analyst at Fidelity Digital Assets, nations may be at risk of further losses due to infertility. in BTC rather than investing.
Hogan highlighted factors such as high inflation, devaluation, and increasing deficits, which would make the lack of investment in BTC a serious missed opportunity for the international community.
The analyst also referred to the Bitcoin Act of 2024, introduced by US Senator Cynthia Lummis, lawyers to establish a national strategic BTC repository. Whether Donald Trump’s administration will follow through on the plan remains to be seen.
If the bill is passed, it could set in motion a political and financial theory, which could force other countries to follow suit. Interestingly, nations hoarding BTC are likely to do so wisely to avoid influencing more buyers and driving up the commodity’s price.
Countries Already Planning to Establish BTC Depositories
While both El Salvador and Bhutan have established national BTC repositories, other countries are poised to join the list. December 2024, deputy of the Brazilian government introduce the law seeking to diversify the Brazilian National Treasury by gaining exposure to BTC.
Similarly, other countries like it in Chile, Canadaagain Czech Republic it is assumed that they process their own strategic archives. At press time, BTC is trading at $94,190, down 3.4% in the last 24 hours.
Featured image from Unsplash.com, Chart from TradingView.com