Bitcoin crash: Deutsche Bank sees five reasons for the price collapse in November
Bitcoin has lost around 35 percent of its value within a few weeks – and many investors are wondering what is behind the drastic decline.
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• Bitcoin has lost around 35 percent of its value since October
• The correlation with the NASDAQ 100 is 46 percent in 2025
• Conflicting signals from the US Federal Reserve are weighing on the price
In a report available to the crypto magazine Decrypt, analysts at Deutsche Bank have identified five key factors that triggered the recent Bitcoin price slide. This shows that the current crash is fundamentally different from previous corrections.
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According to the finance house’s experts, BTC has behaved more like a high-growth technology stock than an uncorrelated store of value since October. According to analysts, the average daily correlation between Bitcoin and the NASDAQ 100 will be 46 percent in 2025, and the correlation with the S&P 500 has increased to 42 percent. As Decrypt reports, both correlations have increased sharply in recent weeks, reaching levels last seen during the 2022 COVID-related market stress.
Another key factor is the monetary policy of the US Federal Reserve. Bitcoin typically performs best in a low interest rate environment – but as the US Federal Reserve has given conflicting signals about a possible third Interest rate cut sends in December, this puts a strain on the course. Deutsche Bank analysts warn that further uncertainty over the Fed’s interest rate path could lead to additional price declines for Bitcoin.
Although the GENIUS Act, a stablecoin law, was successfully passed earlier this year, the CLARITY Act – a key market structure law – has been stuck for months. This regulatory stagnation is unsettling institutional investors and could slow further Bitcoin adoption.
In addition, there is a significant withdrawal by institutional investors. The Deutsche Bank report says that almost five billion US dollars have flowed out of Bitcoin and other crypto-linked exchange-traded products since October. The disruption caused by October’s crash set the tone for the cryptocurrency’s performance and created a negative feedback loop between falling liquidity and falling prices, analysts said. According to data from Kaiko Research, order books on major crypto exchanges collapsed significantly that day, with sell-side liquidity virtually non-existent for several minutes.
After Bitcoin rose to over $126,000 last month, long-term investors began taking profits, selling around 800,000 BTC, according to BTC-ECHO – the largest sell-off of its kind since January 2024. This massive selling pressure has further exacerbated the price decline.
Deutsche Bank analysts are cautious about an early recovery. Whether the cryptocurrency will stabilize after this correction remains uncertain, the report says. Unlike previous crashes, which were primarily driven by retail speculation, this year’s downturn occurred against a backdrop of significant institutional participation, political developments and global macro trends. Total crypto market capitalization has fallen by about 24 percent, or around $1 trillion, since the October peak, according to the report. Investors are likely to closely monitor further developments – particularly the Fed’s interest rate decision in December.
D. Maier / editorial team finanzen.net