Overview

• Deutsche Bank’s analysis says central banks are likely to buy bitcoin this decade, positioning it alongside gold as a reserve asset.
• Bitcoin’s 30‑day volatility hit historic lows in August even as prices set records above about $123,500, addressing a key hurdle to reserve status.
• Institutional uptake has deepened, with bitcoin ETFs drawing more than $110 billion in assets and banks such as Bank of Montreal and Barclays increasing ETF holdings.
• The dollar still accounts for 57% of global reserves, and the bank expects governments to protect monetary sovereignty rather than allow bitcoin or gold to displace it.
• Reserve diversification context includes gold at record highs with strong official demand and signs such as China cutting $57 billion of U.S. Treasury holdings in 2024; separate reports describe U.S. proposals for a strategic bitcoin reserve that remain unconfirmed.