Deutsche Bank Says Bitcoin Could Join Central Bank Reserves as Analyst Sees $150K Year-End Target

Bitcoin’s evolution from a volatile experiment to a potential pillar of the global financial system is gathering new credibility.

In its latest report, Deutsche Bank suggested that within the next decade, central banks may begin to hold Bitcoin in their official reserves, alongside traditional safe havens like gold.

Central banks eye diversification

The bank pointed out that the US dollar still makes up 57% of global reserves, but recent moves hint at diversification. China, for example, reduced its Treasury bond holdings by $57 billion in 2024, while gold surged more than 40% this year to a record $3,763 per ounce. According to Deutsche Bank, Bitcoin is starting to share gold’s role as a hedge against inflation and geopolitical shocks thanks to its limited supply and low correlation with other assets.

Volatility showing signs of decline

A long-standing barrier to Bitcoin’s reserve status has been its price swings. Yet volatility is falling: 30-day realized volatility hit historic lows in August while Bitcoin surged past $123,500. Analysts believe this indicates a break from its purely speculative past, a sign that governments and funds could view it as a credible store of value. Even so, the report emphasized that the dollar will remain dominant, with policymakers unlikely to surrender monetary sovereignty.

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Analyst eyes $150K by year’s end

Adding to the bullish tone, cryptocurrency analyst Timothy Peterson outlined a scenario where Bitcoin could reach $150,000 before the end of 2025. He described the familiar “Uptober” trend as delayed this cycle, with a peak expected in early December before closing the year at a new all-time high.

Peterson also used his forecast to critique the Federal Reserve’s policy approach, arguing that the central bank consistently prioritizes inflation control over employment. While the Fed considers inflation damage permanent, he said, unemployment’s impact on consumers is often far more severe in the short term. “Inflation means not being able to buy the things you want. Unemployment means not being able to buy even the things you need,” he wrote.

Long-term shifts and near-term momentum

The contrast between Deutsche Bank’s decade-long outlook and Peterson’s near-term prediction highlights how Bitcoin is viewed across different horizons. For institutions, the focus is on stability and reserve diversification. For traders and analysts, attention remains on how seasonal trends, macro policy, and investor psychology could push the asset to new highs.

Together, both perspectives underline the same conclusion: Bitcoin is steadily outgrowing its early reputation and embedding itself deeper into global finance, whether as a potential reserve asset for central banks or as a market leader racing toward its next milestone.