Sovereign governments are increasingly showing interest in Bitcoin, with Brazil leading the charge and various U.S. states establishing strategic Bitcoin reserves, which could heighten demand for the cryptocurrency.

Michael Saylor has suggested that the U.S. government might aim to acquire 20% of the total Bitcoin supply, a move that could drive prices higher due to increased buying pressure.

In 2025, Bitcoin (BTC) has shown a modest increase of 13%, distinguishing itself from other major cryptocurrencies that have experienced declines.

The Trump administration has taken significant steps to support Bitcoin, including the announcement of the Strategic Bitcoin Reserve in March 2025, aimed at legitimizing cryptocurrency within the U.S. economy.

Looking ahead, upcoming crypto legislation, including stablecoin regulations, is expected to be signed by the summer of 2025, which will pave the way for broader reforms in the cryptocurrency market.

As we move further into 2025 and 2026, significant developments are anticipated, such as new crypto legislation, major corporate investments in Bitcoin, and a potential 'Bitcoin arms race' among nations.

The Financial Accounting Standards Board's new rule, effective December 2024, allows companies to report gains from Bitcoin holdings, positively impacting shareholder value, as evidenced by Tesla's reported $600 million gain from its Bitcoin assets.

The rise of Bitcoin treasury companies is becoming notable, with various sectors, including medical devices and luxury goods, increasingly investing in Bitcoin, driven by new accounting rules that permit companies to mark their crypto assets at market value.