Fed, Whales, and Congress: Deutsche Bank Explains Bitcoin Crash
Analysis
Price Impact
MedDeutsche bank outlines that bitcoin's crash stems from macroeconomic factors (risk-off sentiment, interest rates), regulatory uncertainty, institutional outflows, and long-term profit-taking. while it explains past events, these factors continue to influence sentiment.
Trustworthiness
HighAnalysis provided by a major financial institution, deutsche bank, leveraging macroeconomic, regulatory, and market behavior factors.
Price Direction
BearishThe primary focus is on reasons for a 'precipitous crash' and 'weakness,' highlighting factors like risk-off sentiment, correlation with tech stocks, regulatory delays, and institutional outflows, which collectively point to downward pressure.
Time Effect
LongMacroeconomic shifts (interest rates) and persistent regulatory uncertainty are structural issues that will continue to influence bitcoin's price and market perception over an extended period.
Original Article:
Article Content:
Cover image via U.Today Read U.TODAY on Google News Five key reasons Bitcoin joining gold Advertisement Banking giant Deutsche Bank has outlined the key reasons behind the precipitous crash of Bitcoin. The financial behemoth has attributed the flagship cryptocurrency's rapid slide to a combination of macroeconomic factors, regulatory uncertainty, and cryptocurrency investor behavior. Five key reasons Unsurprisingly, risk-off sentiment has been cited as the key reason behind Bitcoin's weakness. The leading cryptocurrency is currently trading like a tech stock instead of being an independent store of value. HOT Stories Morning Crypto Report: XRP and $1.69 Trillion Franklin Templeton, Coinbase Reveals Key Data for SHIB Holders, Bitcoin Prints 7,149% Liquidation Imbalance Ripple Executive Reacts to BlackRock’s First Abu Dhabi Board Meeting Strategy (MSTR) Having Second-Worst Month Since Buying Bitcoin Morning Crypto Report: Dogecoin and SHIB 'Santa Rally' Ready? XRP May Hit $5 Thanks to ETF Launch, Bitcoin Bulls Win Back $37 Million The macro environment also appears to be particularly bleak for risk assets now that the odds of implementing a December rate cut have plunged. On Nov. 20, there was just a 22% chance of the Fed reducing the benchmark interest rate by 25 basis points. The odds have now recovered to 75%, but this particular prediction market remains rather volatile. New York Fed President John Williams recently spoke in favor of loosening monetary policy. Advertisement You Might Also Like Mon, 11/24/2025 - 12:06 'Capitulation Is Behind Us': Bitcoin (BTC) Catastrophe Finally Ending, Analysts Show By Arman Shirinyan On the regulatory front, Bitcoin (as well as the broader cryptocurrency sector) has been plagued by the Senate delaying its work on crypto legislation, including the much-talked-about CLARITY Act. Moreover, there are some disagreements between the Democrats and the Republicans regarding the content of the bill. If the bill does not see any traction soon, it might end up losing momentum and die. There are also some sector-specific factors, such as institutional outflows and long-term holders taking profits. Bitcoin joining gold Earlier this year, Deutsche Bank predicted that Bitcoin could end up joining gold on central bank balance sheets. The banking behemoth predicted that BTC's volatility would eventually decline due to growing institutional adoption. #Bitcoin News