Central banks around the world — including the Federal Reserve — could soon become big buyers of bitcoin, after historically shunning the cryptocurrency, according to the Deutsche Bank Research Institute. Monetary policy-setting institutions have traditionally skewed conservative with their reserves, holding mostly gold and Treasurys for stability and to preserve their currencies' value. Yet, the creation of a U.S. strategic bitcoin reserve in March could serve as a key catalyst for a shift. The Wall Street firm expects the cryptocurrency will enjoy greater legitimacy alongside gold as a federal holding over the next five years. "While gold has long been the standard alternative, the Trump Administration's landmark decision to establish a US Strategic Reserve this past March reignites the argument for central banks to hold Bitcoin as a reserve asset," wrote Marion Laboure, research analyst at Deutsche Bank Research Institute. "Plans for a US Bitcoin Reserve have been in the works since last summer." "We conclude there is room for both gold and Bitcoin to coexist on central bank balance sheets by 2030," Laboure added. BTC.CM= YTD mountain Bitcoin The two asset classes have already enjoyed record-breaking years on the back of a weakening dollar, geopolitical and trade uncertainty, and questions around Federal Reserve independence. On Tuesday, gold hit a fresh intraday record, topping $3,700 as central banks continue to add to their reserves of the precious metal. Bitcoin was last around $112,000, after reaching a record high above $120,000 last month. Laboure expects the cryptocurrency will make another run to that level by year-end. Those forces are expected to help bitcoin's adoption among central banks going forward. Like gold, bitcoin can act as a store of value, with a low correlation to traditional assets, that make an asset to diversify into for central banks assessing their reserves, the firm said. "Bitcoin also has the potential to provide both an investment and a consumer-good value. As such, like gold, Bitcoin's long-term performance may also be supported by income growth," Laboure wrote. "This explains why when equities rally strongly, their correlation to Bitcoin can rise." ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
