Deutsche Bank: Bitcoin will be on central bank balance sheets by 2030

Germany's Deutsche Bank reported on Monday that bitcoin is expected to join gold as a recognized reserve asset in the next decade, although gold's current lead in official reserves may continue. The report shows that the US dollar still accounts for 57% of global reserves, but the trend of asset diversification shows that China's US bond holdings will decrease by 57 billion US dollars in 2024, and major markets will tighten the regulation of cryptocurrencies. Deutsche Bank believes that bitcoin and gold, due to their scarcity and low correlation with other assets, will coexist as complementary tools to hedge against inflation and geopolitical risks. Gold prices hit a new high of $3,763 an ounce on Monday, up more than 40% this year. The bank's analysts pointed out that bitcoin's volatility has long hindered it from becoming a reserve asset, but its 30-day volatility hit a record low in August, and the price exceeded $123,500, indicating that it may be moving away from speculative. The bank believes that neither bitcoin nor gold can replace the dollar as a reserve, and its acceptance process will be similar to that of gold, with regulations, macroeconomic trends and time paving the way.