Deutsche Bank revealed the real reasons behind the sudden drop in Bitcoin, confirming that the decline was not random, but rather the result of a combination of several economic, regulatory, and behavioral factors.
🔻 First: macroeconomics and the Federal Reserve
Bitcoin is now trading like high-risk technology stocks, which has made it very sensitive to interest rate expectations.
Two weeks ago, the odds of an interest rate cut in December were only 22%… and today they have risen to 75%, but the market remains highly volatile.
Statements by the President of the Federal Reserve Bank of New York, John Williams, regarding monetary policy easing have increased market confusion.
📉 Second: Ambiguity of congressional legislation
The Senate's delay in passing regulations for digital currencies — especially the CLARITY Act — has created a wave of concern among investors.
Disagreements between Democrats and Republicans threaten to derail the entire bill, meaning uncertainty will persist.
🐋 Third: Whale movements
Large investors (LTHs) have started a widespread sell-off to take profits at recent peaks, which has compounded downward pressure on the market.
🏛 Fourth: Exit of institutional funds
Institutional Bitcoin funds have seen the largest outflows in months, increasing selling pressure on the spot and derivatives market.
📊 Fifth: Behavior of individual investors
The state of "risk aversion" has dominated small traders, making the downward wave sharper than usual.
🔮 Deutsche Bank's vision: Will Bitcoin join gold?
The bank expects that Bitcoin may eventually become a reserve asset added by central banks alongside gold, with a greater decrease in volatility over time through institutional adoption. $BTC #BTCRebound90kNext?
