Fidelity says nation-state Bitcoin adoption will drive growth in 2025

Fidelity Digital Assets has forecasted that Bitcoin (CRYPTO:BTC) adoption by nation-states will significantly contribute to the cryptocurrency market’s growth in 2025.

In a research paper titled "2025 Look Ahead," Fidelity Digital Assets research analyst Matt Hogan noted that more countries, central banks, sovereign wealth funds, and government treasuries are likely to establish Bitcoin holdings as part of their strategic reserves.

“We anticipate more nation-states, central banks, sovereign wealth funds, and government treasuries will look to establish strategic positions in Bitcoin,” Hogan said.

He pointed to Bhutan and El Salvador as examples, countries that have already adopted Bitcoin and seen significant returns in a relatively short period.

The research also stressed that nations not allocating Bitcoin could face increased risks, particularly in light of ongoing economic challenges like inflation, currency devaluation, and fiscal deficits.

“Not making any Bitcoin allocation could become more of a risk to nations than making one,” Hogan remarked.

Hogan further predicted that the United States may move forward with a Bitcoin strategic reserve plan, which could prompt other nations to secretly build their Bitcoin holdings.

He also emphasised that digital asset products like Bitcoin and Ether (CRYPTO:ETH) exchange-traded funds (ETFs) are expected to become mainstream in 2025.

The success of these products could lead to more structured digital asset offerings within traditional finance.

Another major trend expected in 2025 is tokenisation.

According to Fidelity, the on-chain value could rise from $14 billion to $30 billion by year-end, as tokenisation becomes a vital component of blockchain technology.

At the time of reporting, the Bitcoin (BTC) price was $96,896.64.