Core Viewpoint - Deutsche Bank analysts suggest that gold and Bitcoin could coexist on central bank balance sheets by 2030, despite their current short-term performance divergence [1] Group 1: Market Performance - Bitcoin experienced a significant decline, falling below $113,000 after reaching over $123,500 in August, while gold hit a record high of $3,703 per ounce, marking its largest annual gain in over 40 years [2] - The contrasting performance of gold and Bitcoin reflects the market's response to geopolitical tensions, anticipated Federal Reserve rate cuts, and concerns regarding the Fed's independence, which have bolstered gold demand [2] Group 2: Future Outlook - Deutsche Bank's note indicates that 2025 has been a strong year for both gold and Bitcoin, with high demand for gold driven by central bank purchases and a stable store of value [3] - A survey cited in the report reveals that 43% of central banks plan to increase their gold reserves in the next year, and 95% expect a rise in global central bank reserves [3] - Bitcoin has shown resilience despite recent volatility, with historic lows in volatility suggesting increased institutional adoption [3] Group 3: Institutional Adoption and Support - Prominent figures, including Eric Trump, have endorsed crypto as a significant investment and hedge against traditional markets, suggesting that interest rate cuts could further boost crypto prices [4] - Over 180 companies have incorporated crypto into their balance sheets, often following the model of Michael Saylor's Strategy, although enthusiasm for these companies' shares has recently diminished [4] Group 4: Bitcoin's Role as a Macro Hedge - Deutsche Bank analysts highlight Bitcoin's emerging status as a potential macro hedge, indicating that digital assets may find a place alongside traditional reserve assets [5] - The firm believes that Bitcoin has further growth potential and questions whether recent economic and regulatory changes could lead to a self-fulfilling prophecy regarding its valuation [5]