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This recent development could be the games of the game for Bitcoin

According to a new research report on fidelity, 2025. May be years to start shopping around the world and sovereign governments around the world Bitcoin (Btc -0.63%). It is a significant change, given how much money can come into Bitcoin.

In fact, the amount of money running in Bitcoin can even outdo the amount already arrived over the new Spot Bitcoin ETFS. If this is the case, Bitcoin could jump to the value. But how likely is this scenario? Let’s look closer.

Strategic Bitcoin Reserve

It may not be a surprise what led to this recent development of central banks and sovereign governments that buy Bitcoin: the proposed American government plan to launch the Bitcoin Strategic Reserve. While the US government has already ranked as the largest sovereign holder Bitcoin in the world, there was never a formal strategy for the acquisition of crypto. Creating strategic reserves Bitcoin would change that.

Trader reads newspapers on Wall Street.

Image source: Getty Images.

According to the Bitcoin Act of 2024. years, the United States could buy as many as a million bitcoin during a five-year period. It is equivalent to 5% of the total circulating supply of bitcoins. That would, in essence, made American Bitcoin Juggernat.

And there are more aggressive estimates for how much bitcoin could buy now. During the presidential elections 2024. years, followed by Robert F. Kennedy, Jr. (Currently nominated to be an American secretary of health and human services) suggested that the United States should buy 550 Bitla in every day until a total of 4 million Bitcoins set. That scale Bitcoin purchase, of course, is completely unprecedented.

But just keep in mind: there is no clear template to follow us, and no one really is sure to be sure that this strategic Bitcoin reserve will ever be created. Already, the Trump administration seems to have given up on the characterization of that “Bitcoin reserves”, and instead refers to it as a “national digital supply of digital assets”. This suggests that other digital currencies are added to the mix.

Central banks and sovereign governments that buy Bitcoin

Where things become interesting when considering which potential impact creation of this strategic Bitcoin reserve can have other nations. If the United States – the largest economic superpower in the world – buys Bitcoin, perhaps other nations. Otherwise, they may leave them. Fideliti refers to that as the “political and economic game theory”, but long-term crypto investors know what it really is: Fomoor fear of disappearance.

Currently, the best example of the nation strategically purchases significant amounts Bitcoin is El Salvador. He was officially made by Bitcoin Legal Tender 2021. years, and since then he buys Bitcoin aggressively. According to fidelity, there are currently 6,000 bitcoins worth $ 600 million.

It could sound like a lot of bitcoin but a single American company – Microstrategi – There’s a lot more than that. Since January 2025. Microstrathy held 471,170 Bitcoin. And the American government, simply as a result of attacks and assets attack, has 198,000 Bitla. If now move forward with plans for the Bitcoin Strategic Reserve, it could buy 200,000 bitcoin in one year!

And watch out for what happens in Europe. At the beginning of February, the head of the Central Bank of the Czech Republic suggested that the Bitcoin should begin. The current proposal is that Bitcoin buys from $ 7 billion, which is equivalent to about 5% of the International Czech Bank reserves. If this plan moves forward, it could lead to other European nations purchasing Bitcoin.

Can bitcoin double in value?

The proposal for Bitcoin could double as a result of all this new purchase by central banks and sovereign governments could sound, good, far up. Fair enough. But think about what happened to the new Bitcoin ETF points and what influence was at the price of Bitcoin.

In just one year, this point Bitcoin ETFS accumulated about $ 100 billion in assets under management. If we assume the price of $ 100,000 for Bitcoin, it’s equivalent to about a million bitcoin. Yes Million Bitcoin figure should sound familiar – it is exactly the same amount of bitcoin that the American government plans to buy for his strategic bitcoin reserve.

And we all saw what happened when so much of Bitcoin’s purchase happened. As soon as she launched a new Spot Bitcoin ETFS, the price of Bitcoin jumped by 122%. Bitcoin literally doubled in price, $ 44,000 in January 2024. To over $ 100,000 to December.

You can see where I go with that – the trend of central banks and sovereign governments that buy Bitcoin could be much bigger than someone thinks. It was quite literally could be a gig for a cripto. The rules of the global financial order would change, creating a whole new game. The winner, of course, will be a nation that owns the most bitcoin.

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2025-02-09 20:18:00

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