In a recent report, Deutsche Bank has positioned Bitcoin as a potential emerging reserve asset that could share space with gold on central bank balance sheets by the year 2030. Analysts Marion Laboure and Camilla Siazon noted that there is increasing room for both assets to coexist amid evolving trends in global reserves.
The report highlights the ongoing diversification of reserves, pointing out that while the US dollar remains the dominant reserve currency—accounting for 57% of holdings as of 2024—this figure has decreased from 60% at the turn of the century. Notably, China has also been reducing its US Treasury holdings, recently cutting back by US$57 billion last year. In this shifting landscape, both Bitcoin and gold are being increasingly recognized as hedges against inflation, geopolitical instability, and concerns around monetary sovereignty.
Gold, in particular, has performed exceptionally well throughout 2025, hitting a record price of US$3,763 per ounce, representing a year-to-date rally of over 40%, marking its largest gain in over four decades. Central banks are playing a significant role in this surge, with a World Gold Council (WGC) survey revealing that 43% of monetary authorities intend to increase their gold reserves within the next twelve months. Almost all surveyed, 95%, anticipate continued increases in global central bank reserves overall.
On the cryptocurrency front, Bitcoin has experienced some short-term volatility but has shown a remarkable resilience over the long term. After reaching a high of US$123,500 in August, Bitcoin’s price dipped below US$113,000 at the start of the week. Nevertheless, Deutsche Bank analysts noted that Bitcoin’s 30-day volatility has reached historic lows, even when its price has been on the rise, suggesting it may be moving away from its reputation purely as a speculative asset. This shift is further reflected in corporate behaviors, as over 180 companies have begun integrating Bitcoin or other crypto assets into their financial strategies, largely inspired by high-profile accumulations such as those led by executive chairman Michael Saylor of MicroStrategy.
However, the enthusiasm for crypto-related equities appears to be waning despite the growing traction of direct holdings among institutional investors. Prominent figures, including Eric Trump, have advocated for cryptocurrencies, suggesting that a potential interest rate cut could bolster their value, emphasizing digital assets as crucial hedges against traditional markets.
While Deutsche Bank’s analysts recognized the inherent risks associated with Bitcoin’s volatile price swings, they also asserted that regulatory developments and changing macroeconomic environments could accelerate Bitcoin’s path to wider acceptance and legitimacy. Drawing parallels to gold’s ascent in the 20th century, the analysts suggested that skepticism toward Bitcoin might eventually transition into mainstream acceptance.
Although neither Bitcoin nor gold is projected to replace the dollar, both could serve as complementary tools for monetary authorities seeking to diversify their assets. The outlook for 2025 remains promising for both, even amid their distinct price movements. As the report concludes, the competition for attention between Bitcoin and other alternative assets is likely to persist, underscoring the evolving landscape of monetary policy and investment strategies.
