The Current Status and Impact of Bitcoin Reserves in 2025

Recently, governments and large institutions around the world have been frantically hoarding Bitcoin, making it seem like a scramble for digital gold. The U.S. is the most aggressive, with the Trump administration directly incorporating Bitcoin into national reserves, even wanting to exchange gold for 100,000 Bitcoins. Ukraine has accumulated $4.8 billion in Bitcoin through war donations, while El Salvador has benefited even more, with the value increasing by 26% in just a month.

Why has it suddenly become so popular? One reason is to combat inflation; countries like Argentina, where fiat currency has depreciated to almost nothing, see Bitcoin as a lifeline. Another reason is institutional optimism; Morgan Stanley predicts that with every 100,000 Bitcoins added to reserves, the price could rise by 14-18%. However, there are significant issues as well, such as 8% of Bitcoin already being controlled by governments and large institutions, making it increasingly less decentralized.

If this trend continues, Bitcoin prices may skyrocket, but smaller cryptocurrencies could suffer. Institutional influence will grow, making it harder for retail investors to participate. The future will largely depend on whether plans, like exchanging gold for Bitcoin in the U.S. and the Ukrainian bill, can be realized.

Do you think holding Bitcoin as a national reserve is reliable? Let's discuss in the comments~

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