Bitcoin (BTC) Volatility could continue to decrease as general public acceptance increases and that cryptocurrency is adopted by companies, retail investors and governments, said in a research report on Tuesday.
Excitation in the face of upcoming legislation in the United States has stimulated the recent Bitcoin rally, said the German lender, but it should be noted that the rise of the crypto was also accompanied by a historic drop in volatility levels.
The largest cryptocurrency in the world has increased by almost 75% since mid-November, driven by a mixture of favorable regulations, increasing institutional adoption and global macroeconomic changes, according to the report.
The rally coincides with the “crypto weekend” in Washington, DC, stressing the increase in the commitment of the government and the company with digital assets. This week, the House of Representatives should vote on the Clarity Act, a bill on the structure of the crypto market and the law on engineering, which regulates stablecoins in the United States
Deutsche Bank suggests that the drop in volatility signals a maturation market, where regulatory clarity, wider adoption and long -term investment behavior stabilize performance.
While Bitcoin gains legitimacy through regulation and integration into traditional portfolios, it can continue to lose its speculative image and evolve into a more stable strategic asset, added the report.
As volatility decreases and regulatory certainty increases, Bitcoin becomes more attractive for pension funds, sovereign funds and other long -term beneficiaries.
Read more: Clarity Act could change the situation for the institutional adoption of the crypto: benchmark
