Bitcoin is showing soume bounce now after it logged its weakest week since February, falling more than 30% from last month’s peak as macro pressure, policy uncertainty and investor repositioning hit the crypto market all at once, according to Deutsche Bank analysts.
The bank cites a sharp risk-off shift across global markets, with Bitcoin increasingly trading like a high-beta tech stock due to its strong correlation with the Nasdaq-100. Hawkish commentary from Federal Reserve Chair Jerome Powell added to the sell-off, after he cautioned that a December rate cut is far from guaranteed, though NY Fed President John Williams later (on Friday) delivered a more measured tone.
Regulatory momentum has stalled as progress on the Senate’s Digital Asset Market Clarity Act slowed, creating uncertainty for institutional participation. At the same time, large investors have been withdrawing funds, contributing to outflows across major crypto products.
Deutsche Bank also notes that long-term holders, among the earliest adopters, have begun taking profits, adding another layer of selling pressure during a period of fragile market sentiment.
