Gold and Bitcoin to coexist in central bank reserves by 2030, Deutsche Bank says

[A gold Bitcoin floating above a white background]
petesphotography/iStock Unreleased via Getty Images

Gold (XAUUSD:CUR [https://seekingalpha.com/symbol/XAUUSD:CUR]) is quickly cementing its status as the ultimate safe haven in 2025, as it hit a new all-time high on Tuesday. The demand has been driven by expectations of further rate cuts, strong central bank demand, talks about the Federal Reserve's independence and geopolitical concerns.

Parallelly, Bitcoin (BTC-USD [https://seekingalpha.com/symbol/BTC-USD]) has also remained stable as it stayed above the $110K mark. The cryptocurrency's price suggests that there has been an increase in institutional adoption and its potential to attain a macro hedge status, according to Deutsche Bank Research Institute.

Bitcoin (BTC-USD [https://seekingalpha.com/symbol/BTC-USD]) has often been compared to gold when it comes to the safe haven status. But which among the two assets will wield more power? According to Deutsche Bank's analyst Marion Laboure, there is room for both gold and BTC to coexist on central bank balance sheets by 2030.

"2025 is proving to be an excellent year for both Bitcoin and gold demand. A declining dollar, fresh geopolitical and tariff uncertainty, and questions of Fed independence have led both asset classes to outperform," Laboure said.

Bitcoin's (BTC-USD [https://seekingalpha.com/symbol/BTC-USD]) market cap has touched $2.3T in the year, and Laboure believes that the crypto has more room to run, and it will rise back to $120K by the end of the year.

The cryptocurrency had touched $123.5K in August.

"While gold has long been the standard alternative, the Trump Administration’s landmark decision to establish a U.S. Strategic Reserve this past March reignites the argument for central banks to hold Bitcoin as a reserve asset," Laboure added.

Deutsche Bank also believes that the trend of governments, corporations, and institutional investors pursuing Bitcoin as 'digital gold' is likely to continue, especially once the U.S. establishes a strategic Bitcoin reserve and cements the token as a store of value.

"Like gold, Bitcoin has a fixed supply (capped at 21 million). This creates disinflationary benefits, meaning that Bitcoin’s value tends to not erode compared to fiat currencies, which lose purchasing power over time due to inflation... Bitcoin is also independent of any government, which some argue could make it attractive to monetary authorities as a diversification tool," Laboure said.

As the U.S. experiences the softening of the dollar, there has been talk about whether central banks should widen their portfolio of reserves. Deutsche Bank believes that Bitcoin could serve as an additional store of value.

"Another key feature of Bitcoin is its portability and accessibility. If one were to store either 0.001 BTC or 10,000,000 BTC, the cost would be the same: almost zero. This makes a Bitcoin reserve valuable during times of conflict compared to gold, as moving tonnes of gold out of an invaded country would be very difficult and costly," Laboure added.

Laboure added that Bitcoin and gold will continue to coexist in the medium term, with gold maintaining its lead in official reserves and BTC expanding in private and alternative reserves. The analyst also believes that BTC's volatility will decline, but neither Bitcoin nor gold will be able to replace the greenback as the primary reserve asset or means of payment.

HERE ARE SOME: GOLD AND GOLD MINER ETFS: (NYSEARCA:GLD), (IAU [https://seekingalpha.com/symbol/IAU]), (SGOL [https://seekingalpha.com/symbol/SGOL]), (OUNZ [https://seekingalpha.com/symbol/OUNZ]), (BAR [https://seekingalpha.com/symbol/BAR]), (NYSEARCA:GDX [https://seekingalpha.com/symbol/GDX]), (GDXJ [https://seekingalpha.com/symbol/GDXJ]), (NUGT [https://seekingalpha.com/symbol/NUGT]), (RING [https://seekingalpha.com/symbol/RING]), and (DUST [https://seekingalpha.com/symbol/DUST]).

HERE ARE SOME BITCOIN BACKED ETFS: (NASDAQ:IBIT [https://seekingalpha.com/symbol/IBIT]), (BATS:ARKB [https://seekingalpha.com/symbol/ARKB]), (NYSEARCA:GBTC [https://seekingalpha.com/symbol/GBTC]), (NASDAQ:BRRR [https://seekingalpha.com/symbol/BRRR]), (BATS:BTCO [https://seekingalpha.com/symbol/BTCO]), (BATS:HODL [https://seekingalpha.com/symbol/HODL]), (BATS:BTCW [https://seekingalpha.com/symbol/BTCW]), (BATS:FBTC [https://seekingalpha.com/symbol/FBTC]), (NYSEARCA:BITB [https://seekingalpha.com/symbol/BITB]), and (BATS:EZBC [https://seekingalpha.com/symbol/EZBC]).

MORE RELATED STORIES

* Gold Back On Track [https://seekingalpha.com/article/4825016-gold-back-on-track]
* The Technicals: Silver Catches Up To Gold - Both Metals Have Many Bullish Indicators [https://seekingalpha.com/article/4825010-technicals-silver-catches-up-both-metals-have-many-bullish-indicators]
* 5 Reasons Bitcoin Will Climb To $200,000 In The Coming Months [https://seekingalpha.com/article/4824924-5-reasons-bitcoin-will-climb-to-200000-in-the-coming-months]
* China courts foreign gold reserves in bid to boost global clout - report [https://seekingalpha.com/news/4497532-china-courts-foreign-gold-reserves-in-bid-to-boost-global-clout---report]
* Gold powers to new all-time high, silver surges to best level in 14 years [https://seekingalpha.com/news/4497473-gold-powers-to-new-all-time-high-buoyed-by-expectations-of-more-rate-cuts]