Deutsche Bank "Bitcoin (BTC) plunge reveals market structure vulnerability"

JH Kim

Summary

Deutsche Bank said the recent Bitcoin plunge revealed the market structure's vulnerability.
Outflows of institutional funds, slowing regulatory momentum, and profit-taking by long-term holders were cited as factors behind Bitcoin's price decline.
It forecast that the coming weeks will be an important period to assess Bitcoin's market structural resilience and whether investor sentiment improves.

Deutsche Bank said the recent Bitcoin (BTC) plunge revealed the market's vulnerable structure, and that the current correction is testing whether the decline will be short-term or lead to further drops.

On the 24th (local time), according to CoinDesk, a media outlet specializing in cryptoassets (cryptocurrencies), Deutsche Bank pointed to an expansion of risk-off sentiment, hawkish signals from the Federal Reserve, slowing regulatory momentum, outflows of institutional funds, and profit-taking by long-term holders as factors behind the Bitcoin price decline. The bank said, "A $1 trillion decline in Bitcoin's market capitalization is an example of how vulnerable the market structure is."

The report also analyzed that "while Bitcoin's long-term maturation trend is being maintained, increased market uncertainty, reduced leverage, and policy direction ambiguity are further amplifying the declines."

Deutsche Bank forecast that the coming weeks will be an important period to gauge whether Bitcoin's market structural resilience and investor sentiment improve.