They hold fiat because they want to wait for someone to sell their assets below market price, just like now people are struggling due to job firing and lack of job vacancy.
These're what the governments wouldn't tell us that's why they're discouraging bitcoin and crypto currency while countries with the visions to rescue their citizens from that dark will always support it regardless that it's decentralized but also volatile and store of values.
It's not, there's no country want to rescue their citizen from dark system.
Whenever there's new and promising invention that helps the citizen, the government will try to get a share and make the citizen can;t maximize the profit. Just like what we see in the last few days, many countries are taxing Bitcoin.