Deutsche Bank Identifies Bitcoin’s Weakness Factors

Deutsche Bank analysts attribute Bitcoin's weakness to institutional outflows and regulatory delays.

The current decline in the cryptocurrency market reflects a waning interest in digital assets at both institutional and regulatory levels, rather than being the result of a single macroeconomic shock, according to analysts at Deutsche Bank, as reported by CoinDesk. 

In their view, three factors are exerting pressure on Bitcoin:

• a persistent outflow of funds from institutional investors; 
• changes in Bitcoin’s traditional market relationships;
• a loss of regulatory momentum that previously supported liquidity and reduced volatility.

Deutsche Bank noted that the current phase signifies more of a reset than a collapse.

“While the recent drop in Bitcoin’s price appears sharp against its longer history, it reflects a retreat from the highly speculative gains of the past two years, indicating potential for growth,” the analysts clarified.

The bank believes that institutional sales exert the greatest pressure on the first cryptocurrency’s prices. A steady negative trend in ETFs has been observed since November 2025. 

As major investors reduce their market share, trading volumes decrease, making Bitcoin more vulnerable to sharp price swings, researchers explained. 

Deutsche Bank’s own surveys indicate that the level of cryptocurrency adoption among American consumers has dropped from about 17% in the middle of last year to 12% currently. This suggests waning enthusiasm beyond Wall Street. 

Analysts also noted Bitcoin’s growing detachment from traditional market benchmarks. For instance, the asset has sharply lost its correlation with gold. 

Meanwhile, the first cryptocurrency’s dependence on stocks has fallen to 15%—significantly lower than levels seen during previous sell-offs triggered by macroeconomic factors.

From a regulatory standpoint, the market is being stalled by delays with the Clarity Act bill in the United States. The banking sector and crypto companies cannot find a compromise regarding stablecoins. Deutsche Bank added that the pause has “nullified” previously achieved successes in ensuring industry stability. 

However, the bank cautioned against “overinterpreting” the correction. Even after the decline, Bitcoin’s rate remains approximately 370% higher than at the beginning of 2023, reflecting the speculative volume accumulated during past rallies.

Earlier, technical analyst Peter Brandt described the decline of digital gold as a planned campaign by major players.