Institutions may be diversifying their investments by selling gold and investing in crypto assets like bitcoin, which is not surprising. Because their goal is profit and with the success of MicroStrategy, the remaining companies and organizations will not want to be left behind. But I bet central banks will never sell gold to invest in bitcoin unless you can provide credible evidence. Gold is considered the safest asset in the world and with the world geopolitical situation becoming increasingly unstable, they will hoard as much gold as possible instead of selling it. They would not be foolish to sell a stable asset for an unstable and dumped asset. Because it can have serious consequences for the national economy.
Bitcoin is likely in the ballpark of 1,000x or more better than gold in terms of various money properties, such as scarcity, verifiability, transportability, divisibility, costs of holding/transporting, less need for third-party involvement, etc, yet bitcoin is currently ONLY about 10x gold's price, so it is likely that more and more folks, whether individuals, institutions (including banks) and/or governments, are going to continue to gravitate into bitcoin, either buy just buying bitcoin rather than gold, buying bitcoin derivatives, selling gold and/or selling gold derivatives.
Bitcoin has been eating gold's lunch for at least the last 13 years (I like to start my counting from 2012), and will likely continue to eat gold's lunch into the future, even though there has been some recent revival of gold's price. Sure, it might take 50-200 years for bitcoin/gold to reach the correct prices in which bitcoin is 1,000x greater price than gold.
Regarding your reference to shitcoins, and OP's reference to shitcoins, that seems to be largely irrelevant to consider that anyone woudl be using any shitcoins as a gold substitute.