Bitcoin could join central bank reserves by 2030, Deutsche Bank says

Deutsche Bank strategists said Tuesday that Bitcoin could be added to central bank reserve portfolios by 2030 as the cryptocurrency’s market behavior increasingly resembles that of gold. The analysts pointed to a sustained rise in Bitcoin’s price, a decline in its relative volatility, growing liquidity and corporate adoption as factors that could make it a viable complement to traditional reserve assets held by governments and monetary authorities worldwide.

In a research presentation, Deutsche Bank strategists Marion Laboure and Camilla Siazon said Bitcoin’s fixed supply and weakening correlation with stocks and bonds are making it more attractive as a diversification tool. Bitcoin briefly topped 125,000 this week, and gold traded near 4,000 per troy ounce, moves the analysts tied to heightened demand for hard assets amid a softer U.S. dollar and geopolitical uncertainty. They wrote that assessing volatility, liquidity, strategic value and trust leads them to expect both assets will feature on central bank balance sheets by 2030 if current trends continue.

The analysts noted that a growing number of companies have placed Bitcoin on their corporate balance sheets, a development...