Bitcoin News Today: Bitcoin's Stability Could Make It 21st-Century Gold, Deutsche Bank Says

Deutsche Bank has posited that Bitcoin is increasingly resembling gold in its market behavior, with both assets poised to become strategic components of central bank reserves by 2030. The bank's analysts, Marion Laboure and Camilla Siazon, argue that Bitcoin's volatility has declined to historic lows, narrowing its risk profile to align more closely with gold. This shift, they suggest, could position Bitcoin as a modern counterpart to gold's 20th-century role as a store of value and hedge against inflation Central banks will end up holding Bitcoin in their …^[1].

The bank's analysis highlights that Bitcoin's 30-day volatility has fallen to just twice that of gold, the lowest ratio on record. This convergence reflects growing institutional adoption and a maturing market, with corporate treasuries now holding over 6% of Bitcoin's supply. JPMorgan also noted Bitcoin's undervaluation relative to gold, estimating a 13% upside potential on a volatility-adjusted basis Bitcoin Undervalued Versus Gold as Volatility Collapses^[2]. Meanwhile, gold has surged over 50% this year, driven by central bank purchases and inflationary pressures, with Goldman Sachs raising its price target to $4,900 per troy ounce Central banks will end up holding Bitcoin in their …^[1].

Central banks are diversifying reserves amid geopolitical uncertainties and the weakening U.S. dollar. Over 36,000 tons of gold are already held globally, and Deutsche Bank anticipates a similar trend for Bitcoin as nations seek assets with low correlation to traditional markets. The bank emphasized that Bitcoin's scarcity, akin to gold, enhances its appeal as a hedge against systemic risks Deutsche Bank Sees Bitcoin in Central Bank Reserves by 2030^[3]. However, challenges remain, including regulatory clarity and custody solutions for cryptocurrencies Deutsche Bank Sees Bitcoin Joining Gold in Central Bank …^[5].

The interplay between Bitcoin and gold has reshaped investor sentiment in 2025. While Bitcoin traded near $112,000, gold's record highs above $3,850 per ounce underscored its dominance as a safe haven. Analysts attribute this to gold's entrenched institutional trust and its role during periods of political instability, such as U.S. shutdown threats and rising geopolitical tensions . Nevertheless, Bitcoin's institutional adoption, including ETF inflows and corporate treasuries, suggests it could complement gold in reserve portfolios .

Deutsche Bank's forecast hinges on Bitcoin's continued volatility decline and regulatory progress. If realized, the inclusion of Bitcoin in central bank reserves could drive institutional demand and further stabilize its price. However, the bank cautioned that neither asset is likely to displace the U.S. dollar, which remains 57% of global reserves. Instead, both gold and Bitcoin would coexist as diversification tools in an evolving financial landscape Bitcoin to Join Gold on Central Bank Reserve Balance Sheets by …^[4].