Deutsche Bank Backs US Bitcoin Reserve, Sees Strategic Role in Financial Strategy
Deutsche Bank, a German multinational investment bank, has commented on the proposed U.S. Bitcoin reserve, highlighting the positives of the move.Matthew Sigel, Head of Digital Assets Research at VanEck, drew attention to the report in a tweet today.Notably, the Deutsche Bank Research report suggests that Bitcoin could play a major role in the United States financial strategy as a strategic reserve asset. The report highlights Bitcoins fixed supply, decentralization, and strong security track record, comparing it to gold in terms of scarcity and resilience.Furthermore, Deutsche Bank cited growing concerns over inflation and dollar depreciation. It believes that Bitcoins inclusion in national reserves could help hedge against inflation and benefit the U.S. dollar as the country strengthens its leadership in the crypto market.Moreover, the bank emphasized that a U.S. Bitcoin reserve could signal confidence in cryptos future. In particular, it could set new international standards, much like the U.S. gold reserves did in the 20th century.https://twitter.com/matthew_sigel/status/1899064237323964496Additionally, the bank argued that holding Bitcoin as a reserve asset makes sense from a diversification perspective due to BTC's low correlation with other assets. This highlights the benefit of Bitcoin performing independently of traditional investments.Data Confirms Bitcoins Low CorrelationNotably, Deutsche Bank Research's January 2025 asset correlation matrix supports these claims. Specifically, the data shows that Bitcoin maintains minimal correlation with stocks, bonds, and commodities, indicating its role as a hedge against macroeconomic risks.
Text source: The Crypto Basic