Bitcoin Volatility Expected to Decrease with Rising Adoption, Says Deutsche Bank

Bitcoin’s market is showing signs of greater maturity as regulatory developments, growing adoption, and long-term investment trends help steady its performance, according to a new report from Deutsche Bank.

In a research note published Tuesday, the German bank said Bitcoin’s (BTC) volatility is likely to continue decreasing as acceptance grows among corporations, individual investors, and governments.

While enthusiasm around pending U.S. crypto legislation has contributed to Bitcoin’s recent rally, Deutsche Bank pointed out that this surge has come alongside a historic drop in volatility.

Since mid-November, Bitcoin has climbed nearly 75%, driven by favorable regulatory momentum, rising institutional interest, and global macroeconomic factors.

The rally coincides with “Crypto Week” in Washington, D.C., reflecting increasing engagement from policymakers and corporate leaders. This week, the U.S. House of Representatives is expected to vote on the CLARITY Act, which seeks to establish clearer crypto market rules, and the GENIUS Act, aimed at regulating stablecoins.

Deutsche Bank views the ongoing decline in volatility as a sign of a maturing asset class, where clearer regulations, wider adoption, and longer-term investor behavior are helping stabilize prices.

As regulatory frameworks solidify and Bitcoin becomes more integrated into traditional investment portfolios, the bank suggests the cryptocurrency may evolve beyond its speculative reputation and transform into a more stable, strategic asset.

With lower volatility and increasing regulatory certainty, Bitcoin is becoming more appealing to institutional investors such as pension funds, sovereign wealth funds, and other long-term asset managers, the report concluded.