Bitcoin could be in for an era with less choppiness, according to Deutsche Bank. Bitcoin hit a new all-time high above $123,000 on Monday as U.S. lawmakers gathered for “Crypto Week,” an event supporters hope will lead to supportive legislation that can bolster interest from big investors. The $123,000 level reflects an approximately 75% jump from levels seen in mid November, per Deutsche Bank analyst Marion Laboure. As the cryptocurrency has rallied, Laboure pointed out that volatility has also fallen. That can signal that bitcoin may be less tied to broader market stability — or the lack of it — going forward, she said. “While excitement over the upcoming legislations has spurred Bitcoin’s sharp appreciation, it is notable that Bitcoin’s rise has also been accompanied by a historic decline in volatility levels,” Laboure wrote to clients in a Tuesday note. “This combination suggests we are potentially starting to witness a gradual decoupling between Bitcoin’s spot prices and volatility,” she added. This comes “as increasing market adoption, regulatory clarity and institutional participation continue to [stabilize] Bitcoin’s performance over the longer-term.” BTC.CM= 1Y mountain Bitcoin/USD Metrics, 1-year To be sure, bitcoin retreated by more than 2% in midday trading Tuesday. Despite the pullback to around $117,000, Laboure said the popular digital currency is undergoing a broader advance that’s tied to what she described as a convergence of both macro and micro variables. On top of a positive regulatory outlook, she noted increased adoption from institutional investors and longer-term holding patterns. At the same time, she said uncertainty with geopolitics and tariffs, de-dollarization trends and technology advancements also play a role. “Volatility remains inherent,” Laboure wrote. But, “these conditions suggest Bitcoin’s integration into portfolios is maturing, and potentially signals a more sustainable trend beyond previous instances of short-term market speculation.”
