Central banks are increasing their gold reserves; Deutsche Bank says Bitcoin could follow suit.
- Gold prices have risen above $3,800 as central banks increase reserves, reducing their reliance on the US dollar.
- Deutsche Bank predicts that Bitcoin could join gold on the balance sheet by 2030 amid declining volatility.
- Bitcoin has fallen below $113,000, but its adoption is growing: more than 180 companies own the digital asset.
The price of gold surpassed $3,800, cementing its role as a backbone of central bank reserves amid declining confidence in the US dollar. This rise has intensified debate about whether Bitcoin will eventually replace gold in balance sheets.
A new report from Deutsche Bank says this could happen, but not before 2030 and only if volatility continues to decline.
Related: Bitcoin and gold can coexist on central bank balance sheets: Deutsche Bank
Schiff warns: Rising gold prices signal policy failure
Commenting on the rise, economist Peter Schiff wrote that gold trading above $3,800 and silver above $47 should not be seen as confirmation of the Federal Reserve's recent rate cuts or U.S. economic policy.
Gold just traded above $3,800. Silver is above $47. Gold isn't shattering record after record because the Fed's decision to lower interest rates was correct, or because Trump's economic policies are a success. It's indicative of the abject failure of fiscal and monetary policy.
— Peter Schiff (@PeterSchiff) September 29, 2025
Instead, he argued that price dynamics indicate the failure of both fiscal and monetary policies. His comments coincided with new data showing that central banks continue to increase their gold reserves while exploring options beyond the US dollar.
Gold is rising in price, while the dollar's share is falling.
Global reserve data show that the dollar's share of foreign exchange will decline to 43% by 2024, down from 60% at the turn of the century. Last year, China reduced its treasury holdings by $57 billion, accelerating this trend.
A World Gold Council survey found that 43% of central banks plan to increase gold reserves next year, and 95% expect global gold stocks to continue to grow.
On the topic: What awaits Bitcoin's “Uptober” ahead of the gold rush?
This shift set gold's record high in 2025. For policymakers, gold has become more than just a hedge; it is a statement of monetary sovereignty against inflation, geopolitical tensions, and weakening confidence in US assets.
The Case for Bitcoin as a Complement to Gold
Alongside gold's rise, Bitcoin is gaining traction in reserve discussions. A Deutsche Bank report notes that Bitcoin and gold could coexist on central bank balance sheets by 2030. Analysts Marion Labouré and Camille Siazon noted a decline in Bitcoin volatility: its 30-day fluctuations are reaching historical lows even during record price surges.
However, Bitcoin's price momentum has slowed. After peaking at $123,500 in August, it fell below $113,000 this week. This price decline clearly demonstrates central bank hesitation. However, institutional adoption is growing: over 180 public companies now own Bitcoin or other digital assets, many of which follow accumulation strategies similar to MicroStrategy's.
Politics and perception continue to shape Bitcoin's path
Institutional and political voices continue to shape sentiment. Deutsche Bank compared Bitcoin's history to the early adoption of gold in the 20th century, suggesting that today's skepticism could eventually give way to acceptance.
Ahead of the Fed's latest rate cut, Eric Trump told Yahoo Finance that looser policy could push digital assets “dramatically higher.”
Source: cryptonews.net
