TLDR
- Deutsche Bank analysts predict central banks may hold Bitcoin in reserves by 2030 alongside gold
- Bitcoin hit $125,000 while gold surged past $4,000 per ounce in 2025
- Declining Bitcoin volatility makes it more attractive as a reserve asset
- Central banks are diversifying away from US dollar with safe-haven assets
- Analysts say Bitcoin could provide hedge against inflation and geopolitical risks
Deutsche Bank has released analysis suggesting central banks worldwide could begin holding Bitcoin in their reserves by 2030. Analysts Marion Laboure and Camilla Siazon published findings comparing Bitcoin’s emerging role to gold’s historical position in central bank portfolios.
The report arrives as both assets reach unprecedented price levels. Bitcoin recently exceeded $125,000 per coin while gold climbed above $4,000 per troy ounce. Gold prices have risen over 50% in 2025 alone.
Laboure described Bitcoin as a potential “modern cornerstone of financial security” that mirrors gold’s 20th century function. The analysts noted that Bitcoin’s volatility has decreased to historic lows. This declining volatility makes the cryptocurrency behave more like traditional reserve assets.
Central banks have increased gold purchases to reduce dependence on the US dollar. They seek diversification as the dollar faces value pressures. Deutsche Bank suggests Bitcoin could follow the same adoption trajectory.
Why Central Banks Might Choose Bitcoin
The Deutsche Bank report outlined several advantages for Bitcoin holdings. The cryptocurrency offers reserve diversification and reduces exposure to dollar fluctuations. Bitcoin also serves as a potential inflation hedge and protection against geopolitical uncertainty.
However, the analysts identified prerequisites for widespread adoption. Regulatory clarity remains essential for central bank participation. High liquidity levels and secure custody solutions must be available. Contained volatility is necessary for Bitcoin to function effectively in reserve portfolios.
Corporate Bitcoin adoption supports the asset’s institutional credibility. Hundreds of companies now maintain Bitcoin treasuries on their balance sheets. Michael Saylor’s Strategy leads this trend with an entire business model focused on Bitcoin acquisition.
Bitcoin Versus Traditional Assets
The analysts acknowledged Bitcoin’s unique characteristics compared to traditional reserve assets. Unlike bonds, stocks, or property, Bitcoin doesn’t provide underlying cash flows or entitlements. Critics argue this makes Bitcoin unsuitable for long-term holdings.
Deutsche Bank counters that Bitcoin’s decreasing volatility addresses these concerns. The cryptocurrency’s price stability continues improving as adoption expands. This trend supports its viability as a reserve holding.
Goldman Sachs raised gold price targets to $4,900 citing persistent demand from emerging market central banks. This institutional appetite for alternative reserve assets extends beyond gold. The same diversification impulse could drive Bitcoin adoption.
Stock markets present a contrasting picture to safe-haven buying. The S&P 500 reached record highs with year-to-date gains of 14.6%. Investors simultaneously pursue both growth and protection strategies.
Neither Bitcoin nor gold will replace the US dollar entirely according to the report. Laboure emphasized that digital assets should complement rather than supplant national currencies. The role remains supplementary within broader reserve strategies.
Gold’s 2025 performance represents the strongest annual gain since 1979. That year saw 127% increases during oil crisis inflation. Such movements typically coincide with economic turbulence.
Bitcoin traded near $123,800 following its record peak. The cryptocurrency maintained relative stability despite reaching new heights. This price behavior reinforces the Deutsche Bank thesis about maturing volatility patterns.
The report suggests central bank Bitcoin holdings could materialize within five years if current trends continue.
