U.S. and Global Governments Eye Bitcoin Reserves, Could This Change Crypto Forever?

A recent research report from Fidelity suggests that 2025 could mark a turning point for Bitcoin, with central banks and sovereign governments beginning to accumulate the cryptocurrency. This development could significantly increase Bitcoin's value as large-scale institutional investments flow into the market.

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U.S. Moves Toward a National Bitcoin Reserve

One major catalyst for this shift is a proposed U.S. government initiative to establish a national digital asset stockpile. The initiative, originally framed as a "strategic Bitcoin reserve" under the BITCOIN Act of 2024, aims to acquire up to one million Bitcoins over five years. This would represent approximately 5% of Bitcoin's total circulating supply, solidifying the U.S. as a dominant player in the crypto space.

There have even been more ambitious proposals. During the 2024 presidential campaign, Robert F. Kennedy Jr., now nominated for U.S. Secretary of Health and Human Services, suggested that the government should buy 550 Bitcoins daily until it amasses four million Bitcoins. If executed, this level of investment would be unprecedented in the cryptocurrency market.

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However, the Trump administration has recently shifted its language, referring to the initiative as a "national digital asset stockpile" rather than a Bitcoin reserve. This change suggests that other digital assets may also be included in the government's holdings.

Global Ripple Effect: Governments and Banks Enter the Bitcoin Market

If the United States—one of the world's leading economic superpowers—begins acquiring Bitcoin, other nations may follow suit. Fidelity describes this scenario as "political and economic game theory," but in the crypto world, it’s known as FOMO (fear of missing out).

One country already aggressively investing in Bitcoin is El Salvador. After adopting Bitcoin as legal tender in 2021, the nation has continued to increase its holdings, currently possessing approximately 6,000 Bitcoins worth around $600 million.

Comparatively, private sector entities hold significantly more. MicroStrategy, a U.S.-based company, holds 471,170 Bitcoins as of early 2025. Meanwhile, the U.S. government, through asset forfeitures and seizures, possesses 198,000 Bitcoins. If the U.S. follows through with its strategic plan, it could purchase an additional 200,000 Bitcoins in just one year.

Europe is also seeing growing interest. In early February, the Czech Republic's central bank floated the idea of purchasing Bitcoin, with a proposal to invest $7 billion—about 5% of its total international reserves. If approved, this move could encourage other European nations to follow suit.

Could Bitcoin's Value Double?

The idea that Bitcoin could double in value based on institutional and government-level investment might seem ambitious, but recent trends suggest it is possible. The launch of spot Bitcoin ETFs offers a case study in how major inflows can impact prices. Within a year, spot Bitcoin ETFs amassed approximately $100 billion in assets, which translates to roughly one million Bitcoins if priced at $100,000 per coin.

This is the same amount of Bitcoin that the U.S. government plans to acquire under its proposed initiative. When the new Bitcoin ETFs hit the market, Bitcoin’s price surged by 122%, jumping from $44,000 in January 2024 to over $100,000 by December.

If central banks and sovereign governments start investing heavily in Bitcoin, the effects could be even more dramatic. This shift has the potential to reshape the global financial system, making Bitcoin a central asset in international reserves.

Also Read: Why Every Investor Should Own at Least $2,500 in Bitcoin