Central Banks May Stockpile Bitcoin In 5 Years, Deutsche Bank Predicts

Reports have disclosed that Deutsche Bank research sees room for Bitcoin to sit alongside gold on some central bank balance sheets by ￰0￱ bank’s paper says that both assets can act as hedges against certain risks and that the path Bitcoin would follow mirrors gold’s slow adoption into official ￰1￱ Reading: Dogecoin Warning: Double Top Formation Hints At Decline – Analyst Central Banks Could Add Bitcoin According to Deutsche Bank, Bitcoin’s market traits are shifting. Short-term volatility has fallen recently, and prices even topped $123,000 in the run-up to the report, signals the bank flagged as part of Bitcoin’s maturing ￰2￱ gold keeps drawing strong official demand, the report says central banks may begin treating Bitcoin as a complementary store of value rather than a replacement for existing reserve ￰3￱ Bank’s View On Gold And Money Deutsche Bank points out that gold buying by official institutions remains ￰4￱ fact, the bank has moved its own gold forecasts higher as bullion rallies, noting demand from some countries is running well above past ￰5￱ stronger taste for bullion is one reason the bank sees space for two scarce assets — physical gold and Bitcoin — to coexist in official ￰6￱ And Supply Points Based on reports, one part of the argument rests on supply dynamics.

Bitcoin’s fixed maximum supply — 21 million coins — and growing institutional accumulation have tightened available market supply in recent ￰7￱ the same time, the study notes Bitcoin’s 30-day volatility recently hit historic lows, a fact that analysts say reduces one major hurdle to reserve adoption. Still, big price swings remain possible and would be closely watched by any central bank considering a holdings ￰8￱ Adoption Might Happen Deutsche Bank compares Bitcoin’s likely adoption path to how gold entered reserves: slowly, with legal and operational processes built around custody, accounting and ￰9￱ say the US dollar would remain dominant as the world’s main reserve currency, but some diversification into non-dollar assets could push officials to explore alternatives including ￰10￱ Reading: Bitcoin Is ‘Digital Capital’ That Outpaces Traditional Assets—Michael Saylor Policy And Practical Hurdles Legal and technical issues are still on the ￰11￱ solutions must meet the security standards central banks ￰12￱ in many jurisdictions would need updating to allow sovereign institutions to hold ￰13￱ views will matter too; recent debates about central bank independence and rate policy have added friction to major reserve decisions, including concerns raised around actions by US President Donald Trump that some analysts say could influence monetary ￰14￱ image from Meta, chart from TradingView