Why Bitcoin bulls shouldn’t mistake a shrinking dollar reserve share for central bank buying

A declining share of the U.S. dollar in global foreign-exchange reserves does not necessarily indicate that central banks are reallocating into Bitcoin. The shift can reflect changes in exchange rates, reserve diversification, gold purchases, or growth in other fiat currencies, while official Bitcoin holdings remain limited. Bitcoin bulls should therefore avoid treating de-dollarization data as direct evidence of institutional or sovereign demand. The key implication is that Bitcoin’s adoption case must be supported by verifiable flows and holdings, not inferred from broader changes in reserve composition.