Bitcoin’s market appears to be entering a more stable phase, supported by regulatory progress, broader adoption, and the shift toward long-term investment strategies, according to a new report from Deutsche Bank.
In research published Tuesday, the German banking giant said Bitcoin’s (BTC) volatility is likely to keep decreasing as it gains acceptance among companies, retail investors, and government institutions.
Although Bitcoin’s recent rally has been fueled by optimism surrounding upcoming U.S. crypto legislation, Deutsche Bank noted that this surge has coincided with historically low levels of price volatility.
Since mid-November, Bitcoin has gained nearly 75%, driven by favorable regulatory developments, growing institutional involvement, and changes in the global macroeconomic environment.
The recent rally aligns with “Crypto Week” in Washington, D.C., reflecting rising interest from both government bodies and corporations in digital assets. This week, the U.S. House of Representatives is preparing to vote on two significant bills: the CLARITY Act, which aims to define the regulatory structure for crypto markets, and the GENIUS Act, designed to establish rules for stablecoins.
Deutsche Bank sees the drop in volatility as a sign that the market is maturing. The report points to regulatory clarity, widespread adoption, and long-term investor behavior as key factors contributing to a more stable Bitcoin market.
As regulatory frameworks strengthen and Bitcoin becomes increasingly integrated into traditional investment portfolios, the cryptocurrency could move beyond its reputation as a speculative asset and evolve into a more stable, strategic investment option.
With lower volatility and clearer regulations, Bitcoin is becoming more attractive to institutional investors such as pension funds, sovereign wealth funds, and other long-term asset managers, the report concluded.
