Governments buying BTC

It’s looking likely that governments around the world are going to start buying increasingly large stashes of bitcoin. US Presidential candidates are now suggesting it so most other countries are probably now taking notice.

Let’s discuss what happens in the following hypothetical situation: at some stage in the not too distant future 90% of btc is held by governments and corporations. They mostly don’t do anything with it, just hold it.

This leaves 10% of btc for the general public to hold and/or transact with.

Obviously in this is going to make it more valuable. But other than the hopium element of this idea, what are the positives and negatives of this hypothetical situation?

Could it be a bad thing that such a small percentage of the BTC supply is in general circulation?