Matrixport: The central bank's continuous increase in gold holdings may explain the strength of gold and the relative pressure on Bitcoin

Matrixport released a chart analysis indicating that gold prices continue to rise, with the key to this round of increase being the renewed concerns about the weakening purchasing power of the dollar. Against the backdrop of Trump once again pushing for increased tariffs on Europe, the dollar is under pressure, while discussions about foreign central banks potentially reducing their holdings of U.S. Treasuries and shifting more foreign exchange reserves to gold have noticeably increased.

The analysis suggests that the relative strength of gold is closely related to the support from official sector demand. Central banks around the world continue to increase their gold holdings, especially the pace of purchases by the People's Bank of China, which has garnered more market attention and provided ongoing buying support for gold prices. In contrast, Bitcoin is still less frequently included in the diversification framework of central bank reserves in terms of public disclosure. For policymakers, gold remains a more mainstream asset that aligns better with the existing reserve management system, while Bitcoin has yet to be widely accepted within the official foreign exchange reserve framework.

Matrixport stated that this divergence in central bank asset allocation may, to some extent, explain the recent strength of gold and the relative weakness of Bitcoin.