Bitcoin’s (BTC) Volatility could continue to fall as mainstream acceptance grows, and cryptocurrency is adopted by companies, retail investors and governments, Deutsche Bank said in a research report on Tuesday.
Tension over upcoming legislation in the United States has spurred Bitcoin’s recent rally, the German lender said, but it is noteworthy that Krypto’s increase has also been accompanied by a historic decrease in volatility levels.
The world’s largest cryptocurrency has risen nearly 75% since mid -November, driven by a mix of favorable rules, growing institutional adoption and global macroeconomic shifts, the report said.
The rally coincides with “Crypto Week” in Washington, DC, which highlights increasing government and business engagement with digital assets. This week, the House of Representatives is set to vote on the Clarity Act, a crypto market structure bill and the genius law that regulates stableecoins in the US
Deutsche Bank suggests that the decrease in volatility signalizes a matured market where regulatory clarity, broader adoption and long -term investment behavior stabilize performance.
When Bitcoin gets legitimacy through regulation and integration into traditional portfolios, it can continue to throw its speculative image and develop into a more stable, strategically asset, the report added.
As volatility decreases and legislative security increases, Bitcoin becomes more appealing to pension funds, sovereign wealth funds and other long -term allocation.
Read more: Clarity Act could be a game election for institutional adoption of crypto: Benchmark
