Deutsche Bank, a German investment banking firm, has stated that Bitcoin is transitioning to a more sustainable and less volatile phase.
The bullish sentiment has been reflected in the fact that the dominant cryptocurrency has surpassed the $122,000 mark, reaching $117,000 on Monday.
BTC could not surpass $100,000 for an extended period earlier this year, as it encountered resistance in a bearish and uncertain market.
The reduced volatility is a highly favorable indicator for Bitcoin, as per Deutsche Bank analyst Marion Laboure. “Labore wrote to clients in a Tuesday note that a historic decline in volatility levels has accompanied Bitcoin’s sharp appreciation, while excitement over the upcoming legislation has also spurred that rise.”
“This combination implies that we may be beginning to observe a gradual decoupling between the volatility of Bitcoin and its spot prices,” she continued.
As early as 2026, the $1.5 trillion asset manager has declared its intention to offer cryptocurrency custodial services. In recent years, the crypto industry has experienced accelerated growth, which has been partially attributed to Bitcoin’s recent surge.
BTC has experienced a more than 85% increase in value in a single year. This week, the US House of Representatives is deliberating on various crypto policies, which is why its recent ATH surge occurred.
These include the Genius Act, which would alleviate the restrictions and legislation on the expanding industry.
Bitcoin and crypto are also experiencing growth and popularity in other countries. The digital asset industry is being favored by countries such as Guatemala in South America, while Germany and the UK are currently considering crypto legislation.
Additionally, the prices of Bitcoin and cryptocurrency have increased due to the increased investments of numerous technology companies.
The crypto market has stabilized at new, higher prices as institutional interest has increased, with BTC establishing a distinct level of approximately $110,000 to $120,000.
Deutsche Bank also suggests that this trend can render Bitcoin a more strategic and stable asset, thereby increasing its appeal to institutional investors.
Analysts are anticipating that Bitcoin will surpass $150,000 as its next milestone. The crypto and altcoin market will undoubtedly experience repercussions if the growth level reaches that level.
The surge may also be feasible if the crypto week in the US House of Representatives yields optimistic outcomes for the industry.
