"Deutsche Bank predicts Bitcoin could be added to central bank reserves by 2030 as its volatility falls and its behavior resembles gold, despite not being "backed by anything." Recent surges in gold and Bitcoin, driven by central banks seeking diversification, and companies creating Bitcoin "treasuries," show Bitcoin's growing appeal as a safe-haven asset. The price of Bitcoin briefly topped $125,000 yesterday, a new record high. And as its price goes up, its relative volatility declines, a new analysis by Deutsche Bank argues."
"And that in turn increasingly makes Bitcoin a candidate to be added to central bank reserve assets, according to Deutche analysts Marion Laboure and Camilla Siazon. "A strategic Bitcoin allocation could emerge as a modern cornerstone of financial security, echoing gold's role in the 20th century. Assessing volatility, liquidity, strategic value and trust, we find that both assets will likely feature on central bank balance sheets by 2030," they said in a research slide deck today."
Deutsche Bank projects Bitcoin could join central bank reserves by 2030 as its volatility declines and its price behavior becomes more similar to gold. Recent surges in both gold and Bitcoin have been driven by central bank diversification and corporate balance sheets adding Bitcoin holdings. Bitcoin briefly topped $125,000, and rising prices have been accompanied by lower relative volatility, increasing its appeal as a low-correlation, fixed-supply asset. Corporate adoption includes hundreds of companies holding Bitcoin as treasury assets. Gold purchases by central banks continue as a hedge against U.S. political uncertainty and a weakening dollar, reinforcing demand for alternative reserve assets.
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