Why should some countries be afraid of government sanction on bitcoin as an investment or asset to hodl, what have they done to El-Savador that first adopt bitcoin as a legal tender, bitcoin has to be understood in the same perspective as the same money used for making payments because it's a legal and acceptable means, they cannot assume it to be an illicit currency just because they hodl or it's been volatile.
Most likely in this case it is fear because if you look at the current condition, the greater the adoption of bitcoin, the more the central bank loses control over monetary policy, which does not specifically mean that as bitcoin grows, their regulatory conditions within the central bank will be weaker so of course this will allow the government to worry about the control they have if it is weaker.
Indeed, for those of us who really want freedom and without connection with other parties it is good but certainly not with the government because that is what makes some countries including large countries not dare to take risks.
Even small countries like El Savador are risky but of course they clearly know the benefits will outweigh the disadvantages.
Governments have tried their best in all ways to stop bitcoin adoption but they have never achieve any landmark because the more the launch those attacks the more the network remains stronger and the adoption continue to grow, others could learn from El-Savador's holding as well and how they have maintained their their holding decision over time and yet get the best result others can learn from, this is part of the reasons why we are all discussing about them being a reference point when discussing about bitcoin and holding it aside the other whales holders across the world like microstrategy.