In a striking turn of events, central banks across the globe significantly increased their gold purchases in October 2025, a month that has set the benchmark for monthly demand this year. According to reports, global officials bought 53 tons of gold, marking a dramatic response to inflationary pressures, weakening currencies, and escalating geopolitical tensions.
Central Bank Buying Surges
Financial analysts are observing that 2025 is slated to become the fourth-highest year for institutional gold accumulation this century, with central banks accumulating a substantial net year-to-date through October. Deutsche Bank researchers indicate that gold now comprises about 24% of central bank reserves—an elevation reminiscent of the 1990s. This increasing reliance on bullion from governments that had previously distanced themselves from it speaks volumes about the current economic climate.
Bitcoin Enters The Conversation
As gold purchases surge, an intriguing dialogue is emerging among banks and market researchers regarding the potential of Bitcoin as a supplementary asset for national reserves. According to projections from Deutsche Bank, there is a possibility that by 2030, Bitcoin could make its way onto central-bank balance sheets, complementing traditional reserve assets.
Central banks are ramping up gold purchases:
Global central banks purchased +53 tonnes of gold in October, the most since November 2024.
This marks a +194% jump compared to July, and the 3rd-straight monthly acceleration.
In the first 10 months of the year, central banks have… pic.twitter.com/7pZWyEjjvf
— The Kobeissi Letter (@KobeissiLetter) December 4, 2025
Bitcoin’s profile in the market has certainly evolved: liquidity levels are on the rise, and while the cryptocurrency remains more volatile than traditional reserve assets, recent price fluctuations have been less pronounced. Recently, Bitcoin has even breached the remarkable threshold of $123,500, drawing considerable attention across the financial landscape.
A Few Banks Are Testing The Idea
Notably, a select group of central banks is taking a closer look at Bitcoin’s potential role in their reserve strategies. The Czech National Bank, for instance, has contemplated the idea of conducting a “test allocation” to further investigate how cryptocurrencies might behave within their reserves. However, current discussions largely revolve around custody systems, accounting standards, and the reporting of performance rather than immediate acquisitions.
On Gold & Bitcoin: Why Officials Are Cautious
Despite the growing interest, many central banks remain hesitant due to the inherent risks involved. Bitcoin still exhibits price volatility that is significantly higher than that of conventional reserve assets, and the global regulatory framework for digital assets remains fragmented. Experts suggest that clearer regulatory guidance will be essential for many central banks to confidently incorporate cryptocurrencies into their official reserves.
What This Could Mean For Markets
Should even a handful of national banks opt to allocate a minor portion of their reserves to Bitcoin, the impact on demand could be profound, potentially reshaping how markets perceive the cryptocurrency. While such an allocation wouldn’t replace gold or the US dollar, it could elevate Bitcoin’s status as a safeguard against currency depreciation and surging inflation. Simultaneously, this development would necessitate a substantial increase in custody and compliance services to keep pace with demand.
With central banks already demonstrating considerable appetite for gold—53 tons acquired in a single month and approximately 24% of reserves in gold for various entities—the discussions surrounding Bitcoin as a feasible reserve asset represent a significant shift in global monetary policy. Though the journey from theory to implementation remains fraught with uncertainty and challenges, the momentum is undeniable, establishing this as a crucial trend within international finance this year.
Featured image from Unsplash, chart from TradingView
