Matrixport: Central banks continue to increase gold holdings, which may explain the strength of gold and its relative pressure compared to Bitcoin

Odaily Planet Daily reported that Matrixport released a chart analysis indicating that gold prices continue to rise, with the key driver being renewed concerns over the weakening of the US dollar’s purchasing power. Against the backdrop of Trump pushing for additional tariffs on Europe, the US dollar remains under pressure, and discussions about overseas central banks potentially reducing their holdings of US Treasuries and shifting more foreign exchange reserves into gold have noticeably increased.

The analysis suggests that the relative strength of gold is closely related to demand support from official sectors. Central banks around the world continue to increase their gold holdings, especially the People’s Bank of China (PBoC), whose pace of accumulation has attracted more market attention, providing sustained buying support for gold prices. In contrast, Bitcoin is still rarely included in central bank reserve diversification frameworks at the public disclosure level. For policymakers, gold remains a more mainstream asset that aligns better with existing reserve management systems, whereas Bitcoin has not yet been widely accepted within official foreign reserve frameworks.

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