Bitcoin’s price surge past $123,500 in mid-August coincided with one of the calmest stretches in the token’s history, Deutsche Bank said in a note, highlighting what could be an important shift in how the cryptocurrency trades.
The bank pointed out that 30-day volatility fell to just 23% in August, a historic low, even as the token hit fresh all-time highs on August 15. “This combination suggests we may be witnessing the start of a gradual decoupling between Bitcoin’s spot prices and volatility,” analysts wrote, adding that growing portfolio integration could mark a step beyond speculative trading cycles.
Deutsche Bank cautioned that neither Bitcoin nor gold is on track to supplant the U.S. dollar as the world’s reserve currency. However, the bank expects adoption to expand as regulation evolves, macro conditions shift, and the asset class gains legitimacy over time.
“Human nature leads to a desire to break away from traditional assets,” the bank noted, suggesting that U.S.-led adoption may accelerate the process of cryptocurrencies transitioning from speculative plays into “a legitimised, key component of global finance.”
