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According to Fidelity Digital Assets, 2025 will be a turning point in Bitcoin adoption, with more countries, including central banks, sovereign wealth funds, and treasuries, expected to buy the cryptocurrency.

The report notes that having a strategic position in Bitcoin could offset the negative effects of inflation, currency depreciation, and rising budget deficits. “Not allocating Bitcoin may be more risky than allocating it,” analyst Matt Hogan wrote.

On the other hand, the proposed “Bitcoin Act of 2024,” introduced in the Senate by Senator Cynthia Lummis, could lead other countries to follow suit, if passed.

Currently, the US, China, the UK, Ukraine, Bhutan and El Salvador are the largest state-level holders of Bitcoin, although most of their holdings have been obtained through the confiscation or recovery of digital currencies linked to criminal activity.