According to a new report from Deutsche Bank (DBK), Bitcoin (BTC) is poised to achieve recognition as a reserve asset alongside gold within the next decade. The German banking giant suggests that while gold will likely maintain its dominant position in official reserves for the foreseeable future, BTC is on a clear trajectory for adoption by central banks.
The report highlights that the U.S. dollar still constitutes 57% of global reserves but points to emerging diversification trends. Notably, China reduced its U.S. Treasury holdings by $57 billion in 2024, and regulatory frameworks for cryptocurrencies are gaining momentum in key global markets.
Deutsche Bank analysts posit that Bitcoin and gold will coexist as complementary hedges against inflation and geopolitical risks. This synergy is attributed to their inherent scarcity and low correlation with traditional asset classes.
Supporting the bullish sentiment for hard assets, gold reached a record high of $3,763, marking a year-to-date increase of over 40%.
A critical factor for Bitcoin's reserve asset potential is its declining volatility. Analysts noted that BTC's 30-day volatility hit historic lows in August, even as its price surpassed $123,500. This trend indicates a potential decoupling from its historically speculative nature and a maturation towards a more stable store of value.
While neither Bitcoin nor gold is expected to dethrone the U.S. dollar, as governments will act to protect monetary sovereignty, Deutsche Bank envisions BTC following a similar adoption path to gold—evolving from skepticism to widespread acceptance, facilitated by regulation, macroeconomic shifts, and time.
The report concludes that as investors increasingly seek alternatives to traditional assets, Bitcoin is transitioning from a speculative investment into a legitimate component of the global financial system.