Global central bank gold rush could spark Bitcoin price run to new all-time highs
Bitcoin (BTC) price may benefit from significant shifts in global financial trends. US Treasury funds experienced $19 billion in net inflows, surpassing the 2020 pandemic peak, with a 4-week moving average of $7 billion, the highest since March 2023. The 30-year US Treasury yield fell by 30 basis points, indicating increased demand for Treasurys as safe-haven assets, which enhances market liquidity and lowers borrowing costs. However, foreign central banks reduced Treasury holdings to a 22-year low of 23% of US government debt, possibly due to tariff disputes with the US. Gold's share of global reserves reached an all-time high of 18%, with China significantly increasing its reserves. This de-dollarization trend may favor Bitcoin, which previously surged during similar conditions. In 2023, Bitcoin gained 47% amid rising Treasury yields, while the Nasdaq fell. A potential recession in 2025 could hinder Bitcoin's bullish narrative as investors might prefer liquidity and traditional safe-haven assets. Current market dynamics show institutional adoption driving Bitcoin demand, contrasting with low retail interest reflected in Google search trends.
