Global central bank gold rush could spark Bitcoin price run to new all-time highs
The price of Bitcoin (BTC) may rise significantly due to recent financial trends. U.S. Treasury funds experienced $19 billion in inflows, the highest since March 2023, coinciding with a drop in the 30-year Treasury yield by 30 basis points, indicating increased demand for safe-haven assets. In contrast, foreign central banks have reduced their Treasury holdings to a 22-year low while significantly increasing gold reserves, which now comprise 18% of global reserves, the highest level in 26 years. This shift mirrors past trends where Bitcoin witnessed dramatic price increases, such as during the 2020 pandemic, suggesting a potential similar outcome in 2025. Current economic signals indicate a stabilizing bond market amid global de-dollarization, thereby enhancing Bitcoin's appeal as a store of value. However, Bitcoin might face challenges if a recession occurs, prompting investors to favor liquidity over riskier assets. Interestingly, Google searches for Bitcoin have reached long-term lows, indicating that current price movements are likely driven more by institutional and corporate investments rather than retail interest.
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