Gold, Bitcoin ETFs Soar as Dollar Falls to 1990s Reserve Lows

Global reserve realignment in Q1 2025 shows gold’s share rising to 24%—a 30-year high—while U.S. dollar dominance slips to 42%, its lowest since the mid-1990s. Central banks from Poland (+49 t) to China (+13 t), Turkey and India are boosting gold reserves to near 1960s levels, driven by financial sovereignty concerns, sanctions risk and geopolitical uncertainty. The U.S. dollar’s credibility is strained by 120% debt-to-GDP, nearly $1 trillion in annual interest payments, Fed policy uncertainty and new tariffs. Dedollarization accelerates via local currency settlement systems, yuan- and euro-denominated trade deals and BRICS currency initiatives. Meanwhile, Bitcoin ETFs have attracted over $55 billion in net inflows since early 2024, led by BlackRock’s IBIT (AUM $80 billion), as volatility eases to 2.2 times gold. Regulatory clarity in the U.S. cements Bitcoin’s role as “digital gold.” Traders should note that rising gold reserves and Bitcoin ETF demand signal a bearish dollar trend and a bullish outlook for Bitcoin and alternative assets.