Matrixport: Central Banks Continue to Increase Gold Holdings, Possibly Explaining Gold's Strength and Bitcoin's Relative Weakness

Odaily News Matrixport released a chart analysis pointing out that the continuous rise in gold prices is primarily driven by renewed market concerns over the weakening purchasing power of the US dollar. Against the backdrop of Trump once again pushing for tariffs on Europe, the US dollar is under pressure. Simultaneously, discussions have significantly increased regarding the possibility of foreign central banks reducing their holdings of US Treasury bonds and shifting more foreign exchange reserves towards gold.

The analysis suggests that gold's relative strength is closely linked to support from official sector demand. Central banks worldwide continue to increase their gold holdings, with the pace of accumulation by the **People's Bank of China (PBoC)** drawing particular market attention, providing sustained buying support for gold prices. In contrast, Bitcoin is still rarely included in the diversification framework of central bank reserves at the publicly disclosed level. For policymakers, gold remains a more mainstream asset that better aligns with the existing reserve management system, while Bitcoin has not yet been widely accepted within the official foreign reserve framework.

Matrixport stated that this divergence in central bank asset allocation may, to some extent, explain the recent strong performance of gold and the relatively weaker performance of Bitcoin.