Deutsche Bank has analyzed Bitcoin's significant value drop, noting a nearly $1 trillion loss in late November 2025. The cryptocurrency's price fell from $85,565 to $80,000, driven by macroeconomic pressures, a fragile market structure, and shifting investor sentiment.
The report identifies several contributing factors, including heightened interest rate expectations, diminishing regulatory momentum, and profit-taking by long-term holders. These elements have increased Bitcoin's volatility and weakened its effectiveness as a portfolio hedge. Analysts also observed Bitcoin's growing correlation with high-beta tech stocks during periods of market stress, alongside stalled regulatory progress and reversed institutional flows. Despite its long-term potential, Bitcoin's uncertainty and leverage continue to exacerbate market drawdowns.
Deutsche Bank Attributes Bitcoin's $1 Trillion Loss to Market Volatility
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