Bitcoin and gold are currently the most talked about assets. Sometimes Bitcoin performs better than gold, and other times, gold outperforms Bitcoin. They have always dominated the forex and crypto markets and will likely continue to do so in the future. However, this time Bitcoin has entered the reserve conversation, while the value of the dollar has comparatively decreased. Yet, gold still reigns supreme.
De-dollarization and Reality
In its July 2025 report, BlackRock stated that its fund management amounts to nearly $12.5 trillion. According to them, de-dollarization is no longer just a theory but a reality.
Central banks are gradually reducing their dependence on the US dollar and shifting towards other reserve assets. Experts cite geopolitical tensions, persistent inflation, and concerns over US debt security as the main reasons behind this trend.
In the past six months, the value of the US dollar has dropped by about 11% the biggest fall since 1973. This situation is very positive for the crypto market, especially for Bitcoin. Because in times like this, demand for alternative assets like Bitcoin increases, leading to more crypto investments.
President Donald Trump has said that although he prefers a strong dollar, one can earn even more with a weak dollar. His statement can be seen as a silent acknowledgment of the dollar’s decline.
Rethinking the Reserve Structure
In 2024, central banks purchased over 1,000 metric tons of gold, which is twice the annual average of the past decade. As a result, the global government gold reserve has reached around 36,000 metric tons the highest in the past 50 years.
Gold currently accounts for about 20% of global reserves. The dollar’s share has dropped to 46%. The euro holds 16%, and other currencies have fallen to 18%.
Although gold remains the primary safe asset, discussions around Bitcoin are increasing rapidly.
BlackRock has identified Bitcoin as a decentralized, non-sovereign, and limited-supply asset. While central banks have not yet directly included it in their reserves, it is now being mentioned in reports and analyses. This indicates that a Bitcoin-based monetary system might be forming globally very soon.
Current Position of Central Banks
Despite the growing discussions around a Bitcoin-based monetary system, central banks still prefer to buy gold. In the first quarter of 2025, i.e., early this year, central banks bought over 244 metric tons of gold.
There has been renewed demand for gold-based ETFs, with nearly $30 billion in new investments.
According to the World Gold Council’s update in May, Kazakhstan bought 7 tons, and Turkey and Poland each purchased 6 tons of gold.
Additionally, in a 2025 survey, 95% of reserve managers stated that government gold reserves will continue to grow. Nearly 50% wish to increase their own gold reserves, and over 70% aim to reduce reliance on the US dollar.
So, it’s very clear that the value of the dollar is beginning to decline.
Currently, emerging markets like China, Azerbaijan, and Iran are actively participating in this transition.
According to Chinese reports, by mid-2025, their gold reserves rose from 2,000 to 2,299 metric tons. Since 2019, central banks have supplied 25% of global gold demand, which is five times more than ETF flows.
Interest in Bitcoin
In January 2025, the Czech National Bank officially began reviewing Bitcoin as a reserve asset. The governor said the bank might consider investing up to 5% of its €140 billion portfolio in Bitcoin.
Meanwhile, a citizens’ movement in Switzerland has demanded that the central bank hold 1–2% in Bitcoin. Interest like this is continuously growing.
However, despite verbal discussions around Bitcoin, a 2025 survey showed that none of the 91 central banks currently hold Bitcoin. Only 2.5% expressed interest in investing in crypto within the next 5–10 years, whereas in 2024, the figure was 16%.
The reasons for this decline include Bitcoin’s high price fluctuations, volatility, security, and custodial concerns.
These are why most banks are still staying away from crypto. But overall, they remain positive about Bitcoin.
Bitcoin’s Acceptance
On July 14, 2025, Bitcoin crossed $123,000. Various crypto-based media outlets say this surge is due to $50 billion in institutional investments, led by BlackRock’s iShares Bitcoin Trust.
Additionally, Bitcoin’s performance as an ETF has surpassed that of early gold-based ETFs.
Interestingly, when the Federal Reserve rejected the idea of launching a digital dollar, Bitcoin positioned itself as a strong decentralized alternative.
Moreover, the US has passed the CLARITY Act and the GENIUS Act, giving digital assets legal recognition.
While central banks are hesitant, some governments and regions—such as Pakistan—have announced Bitcoin reserves under their finance ministries. El Salvador now holds over 6,000 Bitcoins.
Conclusion
Although most central banks have not yet added Bitcoin to their reserves, regional banks have already started taking initiatives. Furthermore, central banks remain positive about Bitcoin and are keeping it under observation. It’s likely that in the future, Bitcoin will become part of sovereign reserves.
