CandleFocus

Fidelity Warns: Not Allocating Bitcoin Could Be Riskier for Nations Than Embracing It

Fidelity predicts that by 2025, nations, central banks, and government treasuries will strategically position themselves in the cryptocurrency market. The approval and launch of spot Bitcoin exchange-traded products in 2024 have sparked significant demand from institutional and retail investors, leading to broader institutional acceptance of Bitcoin. Historically, countries like the US and China have held Bitcoin due to government seizures, but Fidelity believes this will change. Bhutan and El Salvador have seen success with proactive Bitcoin strategies, prompting governments to view Bitcoin as a hedge against economic instability. Calls for the US to lead this shift have gained traction, with President-elect Donald Trump and Senator Cynthia Lummis expressing interest in establishing a Bitcoin reserve. However, uncertainty remains in government action and policy formation. Despite this, the recognition of Bitcoin as a crucial financial instrument is gaining momentum.

Related News