Central Banks Shift Focus from Dollar to Gold and Bitcoin in 2024

As central banks increasingly shift away from the U.S. dollar, a notable trend is emerging towards gold and Bitcoin as preferred reserves. In 2024, these institutions collectively acquired over 1,000 metric tons of gold, with a significant surge in purchases from countries like Kazakhstan and Turkey.

Concurrently, Bitcoin's market presence is growing; its price recently soared to $123,000, attracting substantial institutional investment, particularly from firms like BlackRock. Despite this momentum, a survey reveals that only a small fraction of central banks plan to engage with cryptocurrencies in the near future.

Billionaire investor Ray Dalio has also highlighted the risks of devaluation in fiat currency, favoring alternatives like Bitcoin and gold. As the dollar weakens, the balance of asset preference is shifting, indicating a complex future for currency and reserve strategies.