Gold has reached the highest percentage of central bank reserves in decades, potentially influencing Bitcoin’s trajectory as it becomes a future reserve asset according to Deutsche Bank.
In the report released on Thursday, Deutsche Bank noted that gold now constitutes 24% of central bank reserves, the largest share since the 1990s. This surge in demand for gold has been significantly faster than the average between 2011 and 2021, with some analysts drawing parallels to the performance of Bitcoin, which has been achieving record highs in 2025.
The shift back to gold marks a pivotal moment in global finance, reviving patterns reminiscent of much of the 20th century.
Gold Reaches New Inflation-Adjusted Peaks
Although gold prices have soared recently, surpassing new highs in fiat currencies, it has only just recently exceeded its inflation-adjusted all-time highs from 1980.
“It’s only in recent weeks that gold has finally surpassed its real-adjusted all-time highs from around this point 45 years ago,” noted Deutsche Bank strategists.
Further, Deutsche Bank attributed the slow march to gold’s inflation-adjusted highs to extended periods of central bank selling, mandatory institutional gold sell-offs, and the advent of the fiat currency era. The formal role of gold in reserve assets concluded in 1979 when the IMF banned members from pegging their currencies to gold.
Bitcoin’s Viability as a Reserve Asset
As gold continues to set historic inflation-adjusted highs, Marion Laboure at Deutsche Bank has emphasized striking similarities between gold and Bitcoin, suggesting Bitcoin’s potential as a reliable store of value. In her report titled “Gold’s reign, Bitcoin’s rise,” Laboure highlighted many similarities in the performance trajectories of these assets since their emergence.
Moreover, both gold and Bitcoin exhibit high volatility and phases of underperformance, yet they also offer notable diversification benefits due to their low correlation with traditional assets.
Forecast: Bitcoin and Gold in Central Bank Reserves by 2030
Laboure also outlined the prospects of Bitcoin becoming a part of central bank reserves, despite concerns regarding its volatility and lack of intrinsic backing. However, she pointed out that volatility has significantly decreased to historic lows. Challenges such as limited utility, speculative perceptions, cyber risks, and liquidity issues remain, but these may not deter the trend.
Laboure predicts that both Bitcoin and gold could prominently feature on central bank balance sheets by 2030, underlining their shared characteristics as safe-haven assets. This comes in light of increasing institutional interest in Bitcoin adoption and the growing interest from various governments in including Bitcoin in their strategic reserves.
