Gold Price Surpasses BTC Amid Powell Heightening Inflation Anxieties: Are Rate Reductions an Illusion?

A recent study by Deutsche Bank explores the possibility of BTC joining the escalating gold prices in central bank reserves by 2030. The analysis concentrated on aspects like market fluidity, volatility, and credibility, concluding plainly: both assets might coexist.

The report describes gold and BTC as “complementary diversifications” for central banks, but emphasizes that the US dollar will continue to maintain its leading position for the foreseeable future.

“We conclude there is room for both gold and Bitcoin to coexist on central bank balance sheets by 2030,” the analysts stated.

In the meantime, gold has increased by +10.5% in the past week, while Bitcoin USD has dropped nearly -4%. So, which one presents a better investment opportunity for Q4 2025?

What Keeps Gold Dominating Reserve Strategies? And Where Does BTC Stand?

Gold continues to form the foundation of official reserves. In September, prices reached an unprecedented high of $3,783 per ounce, driven by purchases from central banks and geopolitical concerns.

According to FRED data, the buyer interest for gold by central banks has risen for five consecutive quarters, marking the longest streak since the 1970s.

The Gold Price is Wrong

Gold is, in fact, cheap when compared to the global fiat money circulating supply.

And the potential for much higher prices is glaring.

At $3,600, it’s clear that gold is at nominal all-time peaks.

However, when assessed against M2, it remains significantly below historical averages… pic.twitter.com/98QMsyCuxl

— Katusa Research (@KatusaResearch) September 20, 2025

On one side, it’s a tired narrative, but visiting any gold or other financial subreddit can be astonishingly uninspiring.

Indeed, the entire protocol can be:

• Well ACHTUALLY the US govt data is incorrect
• An attack on prominent investors instead of engaging with their arguments

Nonetheless, despite this, gold keeps thriving.

Henry Allen, a strategist at Deutsche Bank, articulated it succinctly:

“While many factors influence gold prices, a significant one is the belief that it serves as a haven bought by investors during times of uncertainty.”

The current surge resembles the Volcker era of the 1980s, when strict monetary policies increased the market demand for safe-haven assets.

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Could BTC Become the “Digital Gold” That Central Banks Adopt?

While Bitcoin remains significantly more volatile than gold, its upward trajectory is unmistakable. Bitcoin USD prices reached $123,500 in August, and as reported by CoinGecko, Bitcoin has outperformed gold by +22.7% over the past year.

Changpeng Zhao, co-founder of Binance, asserted that the advantage of portability is crucial: “Gold is fantastic if you can take it with you… If only there were a way to create digital gold.”

Bitcoin’s limited circulating supply, autonomy from governments, and straightforward verification processes continuously provide it with an edge. This combination is particularly appealing for private reserves and alternative funds in a world grappling with ongoing inflation.

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Why This Discussion Is Significant for Investors Beyond Crypto

Central banks do more than manage reserves; they influence the global trading market environment. Even small Bitcoin allocations on their balance sheets could catalyze trillions in fresh institutional investments.

From a macroeconomic perspective, Bitcoin serves as a growth hedge, whereas gold acts as a hedge against fear. Both assets could coexist in the coming decade, yet recent trends indicate that BTC is currently the superior performer compared to gold.

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The article Gold Price Outperforms BTC as Powell Fans Inflation Fears: Are Rate Cuts a Pipe Dream? first appeared on 99Bitcoins.