Bitcoin broke several new records yesterday, dropping to over $123,000, while increasing profit-taking and selling pressure pushed the price down to $117,000.
A new report from Deutsche Bank was released as analysts claimed that Bitcoin's decline is a healthy correction and a preparation for the next bull run.
According to Coindesk, Deutsche Bank analysts stated that Bitcoin's volatility has decreased and this decline indicates that the market is maturing and on a growth trajectory.
Deutsche Bank, Germany's largest commercial bank, stated that Bitcoin's recent explosive performance is due to a unique combination of five factors, including institutional, macroeconomic, and technological factors, and BTC is now entering a phase of maturity and institutional integration.
At this point, analysts note that ETF capital inflows are increasing, regulations are clearer, widespread adoption is growing, macroeconomic conditions are more favorable, and technological advancements are driving Bitcoin prices higher.
The bank notes that although Bitcoin has reached record highs, its volatility has significantly decreased, a sign that the market is maturing. Analysts further state that Bitcoin's volatility continues to decline as the adoption rate of BTC increases.
"As institutional adoption increases, the regulatory environment stabilizes, and investors and governments use Bitcoin more widely, Bitcoin is solidifying its position as a new digital reserve asset.
This new reality lays the foundation for the long-term sustainable growth of BTC prices.
