Deutsche Bank, Bitcoin, and Core Reserves: A New Gold Rush?

Deutsche Bank analysts suggest Bitcoin could mirror gold's role as a core reserve asset for central banks by 2030, driven by de-dollarization and institutional adoption.

Is Bitcoin the new gold? Deutsche Bank analysts think so, suggesting it could become a staple in central bank reserves alongside gold by 2030. Let's dive into why this is gaining traction.

Bitcoin as Digital Gold: Deutsche Bank's Perspective

Deutsche Bank economists Marion Laboure and Camilla Siazon believe that as confidence in the US dollar wanes, central banks might start viewing Bitcoin as a modern equivalent to gold. This shift is fueled by the decreasing dependence on the US dollar and the increasing acceptance of Bitcoin by institutions.

De-dollarization and the Rise of Bitcoin

The Bloomberg report highlights a significant trend: de-dollarization. Laboure notes that the dollar's share in global reserves has dropped from 60% in 2000 to 41% in 2025, with Bitcoin and ETFs benefiting from this change. While JPMorgan analysts suggest stablecoins could revive dollar demand, the overall trend points towards diversification into assets like Bitcoin and gold.

Central Banks and Bitcoin: A Future Reality?

Despite Bitcoin's notorious volatility, Deutsche Bank analysts argue that its legitimacy, liquidity, limited supply, and ability to hedge against inflation and geopolitical risks make it an attractive asset for central banks. They predict that by 2030, Bitcoin will be a part of central bank balance sheets, mirroring gold's role in the 20th century.

ETF Inflows and Institutional Adoption

The recent performance of Bitcoin ETFs supports this view. Since early 2024, US spot Bitcoin ETFs have attracted substantial net inflows, bridging traditional finance and digital assets. These ETFs now hold 6.45% of the global Bitcoin supply, valued at over US$165 billion. This surge in ETF inflows underscores the growing institutional interest in Bitcoin.

Is a Bitcoin Price Peak on the Horizon?

According to on-chain analytics firm CryptoQuant, there are currently no signs of a Bitcoin price peak. Despite Bitcoin hitting an all-time high above $126,000, the Bitcoin Net Realized Profit/Loss indicator suggests that the rally is still intact. This indicates that there's still room for growth.

Personal Take: Bitcoin's Maturation

It's fascinating to see how Bitcoin's narrative is evolving. Once dismissed as a speculative asset, it's now being considered as a legitimate reserve asset by major financial institutions. The growing acceptance of Bitcoin ETFs and the increasing interest from central banks highlight its maturation as an asset class. While volatility remains a concern, the long-term potential of Bitcoin as a store of value seems increasingly promising. Germany selling all of its Bitcoin holdings is interesting, but doesn't deter from the overall adoption trend.

So, will Bitcoin become the new gold? Only time will tell, but the signs are certainly pointing in that direction. Keep an eye on those ETF inflows and central bank announcements – it's gonna be a wild ride!