Privately held investment firm Fidelity says that this year is likely to be a big one when it comes to the acceptance and adoption of Bitcoin (BTC).
Stay Ahead of the Market:
- Discover outperforming stocks and invest smarter with Top Smart Score Stocks
- Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener
In a research report, Fidelity Digital Assets says: “More nation-states, central banks, sovereign wealth funds, and government treasuries will look to establish strategic positions in Bitcoin.” Fidelity notes that U.S. president-elect Donald Trump continues to champion a strategic Bitcoin reserve for America, though it remains to be seen if that happens.
Fidelity goes on to say that, given macro-economic headwinds such as inflation, currency debasement, and government deficits, not acquiring Bitcoin could be riskier than buying the largest cryptocurrency by market capitalization.
Other Nations to Follow the U.S.
If the U.S. does establish a strategic Bitcoin reserve, other nations are likely to follow suit, says Fidelity in its report. Additionally, Fidelity says that central banks around the world continue to study the feasibility of digital currencies and are exploring the possibility of accumulating crypto.
The U.S., China, and United Kingdom are currently the largest government holders of Bitcoin, notes Fidelity, with most of those holdings coming from government seizures of digital assets used in criminal activities. Bitcoin has risen 110% in the last 12 months.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on Bitcoin, so we’ll look at the cryptocurrency’s three-month performance instead. As one can see in the chart below, the price of BTC has risen 60% in the last 12 weeks, which is a strong showing.
