Catenaa, Thursday, November 27, 2025- Bitcoin has dropped from $126,000 in early October to below $82,200 last week, driven by risk-off sentiment, a hawkish Federal Reserve, stalled crypto legislation, waning institutional interest, and profit-taking by long-term holders, according to a report by Deutsche Bank.
Analysts warned the downturn may continue amid market uncertainty.
The bank said this decline differs from past crashes, which were largely retail-driven. Institutional participation has been substantial, including withdrawals from crypto exchange-traded products and futures liquidations.
Nearly $5 billion left Bitcoin and other crypto-linked ETFs since October, while around 800,000 BTC were sold by long-term holders, marking the largest profit-taking move since January 2024.
Deutsche Bank analysts noted Bitcoin has behaved more like a high-growth tech stock than a defensive asset, with correlations to the Nasdaq 100 and S&P 500 climbing to 46% and 42%, respectively.
Gold and US Treasuries have outperformed Bitcoin during this period.
Uncertainty over the Federal Reserve’s interest rate path has added pressure. Earlier expectations for a December rate cut have waned following remarks from Fed Chair Jerome Powell and Governor Lisa Cook, contributing to the ongoing risk-off environment.
Liquidity gaps from October’s crash amplified price swings and discouraged market makers from providing support.
Despite a modest rebound to $88,500, Deutsche Bank analysts said Bitcoin’s performance remains fragile. The broader crypto market has lost about $1 trillion in capitalization, a roughly 24% decline since its October peak.
Analysts said ongoing institutional caution and macroeconomic pressures could sustain downward momentum.
