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What will happen to Bitcoin's volatility — a forecast from Deutsche Bank

For a long time, sharp fluctuations in Bitcoin's price have deterred cautious investors. However, according to a forecast from Deutsche Bank, its volatility will gradually decrease due to growing institutional adoption and greater regulatory clarity.

As reported by CoinDesk, a Deutsche Bank report suggests that Bitcoin's volatility is likely to continue its downward trend. If this trend holds, BTC could become more similar to traditional assets, making it even more attractive to long-term investors.

Why Bitcoin's volatility is decreasing

Since its creation, Bitcoin's price has always been highly volatile. However, according to Deutsche Bank, several key factors are contributing to this decrease in volatility.

First, institutional adoption is growing. More and more companies, retail investors, and governments are beginning to view Bitcoin not just as a speculative asset but also as a tool for long-term investment.

Second, there is increasing regulatory clarity. For example, during the recent U.S. Crypto Week in Washington, the GENIUS Act was signed into law, which provides a regulatory framework for stablecoins. Additionally, the CLARITY Act, which establishes a regulatory framework for cryptocurrencies, has already passed the House of Representatives.