Crypto SWOT: Deutsche Bank predicts central banks may hold substantial Bitcoin and gold reserves by 2030

(Kitco Commentary) - Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Zcash, rising 68.74%.

Strengths

Bitcoin (BTC) hit a new all-time high last Sunday entering a new week, climbing to $125,689 as investors sought safe-haven assets amid the ongoing U.S. government shutdown. Traders mentioned potential resistance at $135,000, with $150,000 in sight if the rally continued, according to Bloomberg. However, the Trump tariff threat on China did push the digital asset lower as the week came to a close.
A Winklevoss-backed crypto firm, OranjeBTC, announced plans to expand in Brazil following its public listing on the Brazilian stock exchange. The company aims to increase its Bitcoin holdings and launch new educational programs to promote broader adoption of digital assets. Its education arm will offer courses, events, and training to help grow Brazil’s crypto ecosystem.

Weaknesses

Of the cryptocurrencies tracked by CoinMarketCap, the worst performer for the week was MYX Finance, down 45.74%.
In the Trump administration’s latest move to scale back cryptocurrency enforcement, Roger Ver, a well-known crypto investor, agreed to pay about $48 million to settle a tax fraud case with the U.S. Department of Justice.
Shares of BitMine Immersion Technologies were volatile in early trading, falling as much as 3.5% before recovering to a 1% gain. The stock initially dropped after Kerrisdale Capital released a short report on the company, which is focused on Ethereum (ETH) treasury operations. BitMine counts Fundstrat Global Advisors founder Thomas Lee as its board chairman, Bloomberg reports.

Opportunities

HashKey Group, operator of Hong Kong’s largest licensed crypto exchange, has confidentially filed for an IPO in the city, according to Bloomberg. The listing could occur as soon as this year, signaling growing institutional interest in Asia’s regulated crypto markets.
Deutsche Bank analysts predict that by 2030, central banks could hold significant amounts of Bitcoin and gold as reserve assets, citing the weakening U.S. dollar and the rising institutional acceptance of cryptocurrencies.
Morgan Stanley announced it will expand access to crypto investments for all of its clients, including those with retirement accounts. Starting October 15, financial advisors will be permitted to offer crypto funds to any client, not just those with an aggressive risk tolerance or over $1.5 million in assets, according to Bloomberg.

Threats

Stablecoin issuers operating in California face uncertainty over which regulations to follow amid overlapping state and federal frameworks. Depending on how the federal government interprets the Genius Act, firms may have to choose between state licensing or a federal pathway, according to Bloomberg.
Ethereum (ETH) traded near $4,100 on Friday after a sharp selloff from $4,700, triggered by renewed U.S. regulatory concerns. Technical indicators suggest that momentum currently favors sellers.
The European Union (EU) has proposed sanctions on A7A5, a ruble-backed stablecoin allegedly tied to sanctioned Russian actors. The proposed measures would ban EU-based entities from conducting any transactions involving the token.

Frank E. Holmes

Frank Holmes is CEO and chief investment officer of U.S. Global Investors, Inc., a boutique investment advisory firm based in San Antonio that manages domestic and offshore funds specializing in the natural resources and emerging markets sectors. The company’s no-load mutual funds include the Global Resources Fund (ticker PSPFX), the World Precious Minerals Fund (UNWPX) and the Gold Shares Fund (USERX).

Please consider carefully the fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Distributed by U.S. Global Brokerage, Inc.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk.

The S&P/TSX Global Gold Index is an international benchmark tracking the world's leading gold companies with the intent to provide an investable representative index of publicly-traded international gold companies. The FTSE Gold Mines Index Series encompasses all gold mining companies that have a sustainable and attributable gold production of at least 300,000 ounces a year, and that derive 75% or more of their revenue from mined gold.

Holdings as a percentage of net assets as of 6/30/07: Jiangxi Copper (China Region Opportunity Fund 1.74%); Silvercorp Metals Inc. (World Precious Minerals Fund 2.78%, Global Resources Fund 0.89%, China Region Opportunity Fund 2.42%); Gold Fields Ltd. (Gold Shares Fund 6.05%, World Precious Minerals Fund 2.58%, Global Resources Fund 0.39%); Sino Gold Mining Ltd. (Gold Shares Fund 1.03%, World Precious Minerals Fund 0.58%, China Region Opportunity Fund 0.27%); Anglogold Ashanti (0.0%); Dynasty Gold (0.0%).

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Crypto SWOT: Deutsche Bank predicts central banks may hold substantial Bitcoin and gold reserves by 2030

By Frank E. Holmes

Kitco Commentaries
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Frank E. Holmes

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opinion

Crypto SWOT: Deutsche Bank predicts central banks may hold substantial Bitcoin and gold reserves by 2030

By Frank E. Holmes

Kitco CommentariesOpinions, Ideas and Markets Talk

Frank E. Holmes

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Kitco Commentaries
Opinions, Ideas and Markets Talk