TL;DR
- The US dollar’s share of global reserves fell to a two-decade low of ~40%.
- Gold reserves rose to ~28%, their highest level since the early 1990s.
- Institutional and sovereign Bitcoin holdings now represent a major market segment.
The United States dollar now represents about 40 percent of global foreign exchange reserves. Analysis from The Kobeissi Letter shows this level marks a two-decade low for the currency. The dollar’s share has fallen approximately 18 percentage points from its prior dominance. This change points to a slow transformation in how nations store value.
Central banks and sovereign funds are allocating capital toward other assets. Gold has reached 28 percent of aggregate global reserves, a level not seen since the early 1990s. The metal’s share increased by about 12 percentage points. Gold now exceeds the combined reserve share of the euro, the Japanese yen, and the British pound.
BREAKING: The US Dollar now represents ~40% of global currency reserves, the lowest in at least 20 years.
This percentage has declined -18 percentage points over the last 10 years.
Over the same period, gold’s percentage has increased +12 points, to 28%, the highest since the… pic.twitter.com/M0BqI09iQ4
— The Kobeissi Letter (@KobeissiLetter) January 9, 2026
Direct buying activity from official institutions supports gold’s advance. Many central banks cite a desire to diversify away from traditional paper currencies. This strategic demand contributed to a 65 percent rise in the price of gold during 2025. The gain was the metal’s largest annual increase since 1979. Concurrently, the US Dollar Index fell 9.4 percent, its poorest yearly performance in eight years.
Interest in Bitcoin grows within a similar macroeconomic context
Institutions and some governments now classify it as a potential long-term store of value. Geopolitical tensions and inflation concerns have accelerated this appraisal. Data from the analytics platform BiTBO quantifies this institutional footprint.
Exchange-traded funds hold nearly 1.5 million Bitcoin, worth about 135 billion dollars. This amount equals roughly 7.1 percent of the asset’s fixed total supply. Public companies control more than 1.0 million Bitcoin, and private firms hold close to 430,000. Government treasuries collectively possess over 518,000 Bitcoin. These figures show sovereign and corporate ownership is now a substantial part of the market.
BlackRock, the world’s largest asset manager, has publicly analyzed Bitcoin’s behavior. A senior executive from the firm stated Bitcoin’s long-term price movement shows little correlation to equities. The pattern resembles the historical relationship between gold and stocks. There are temporary periods where correlations spike, but they typically return to near zero over extended time frames.
The decentralized nature of Bitcoin and its algorithmic supply limit are frequently cited advantages. These features differentiate it from fiat currencies, which central banks can expand. The collective actions of reserve managers, ETF issuers, and corporations are creating a new demand profile for digital assets.
This activity coincides with a discernible reduction in the dollar’s traditional role. The financial system appears to be testing multiple alternatives for preserving wealth, with gold and digital assets both seeing increased allocation.
