Bitcoin (BTC) Volatility could continue to decrease as conventional acceptance and cryptocurrency grows is adopted by companies, retail investors and governments, said Deutsche Bank in a research report on Tuesday.
The emotion for the next legislation in the United States has stimulated the recent concentration of Bitcoin, said the German lender, but it is remarkable that the rise of cryptography has also been accompanied by a historical decrease in volatility levels.
The largest cryptocurrency in the world has increased almost 75% since mid -November, promoted by a combination of favorable regulations, the growing institutional adoption and global macroeconomic changes, according to the report.
The rally coincides with the “Crypto week” in Washington, DC, highlighting the increase in government and corporate commitment with digital assets. This week, the House of Representatives will vote on the Clarity Law, a draft Law of Crypto Market Structure and the Genius Law, which regulates the stable in the US.
Deutsche Bank suggests that the fall in volatility indicates a maturation market, where regulatory clarity, the broader adoption and long -term investment behaviors are stabilizing performance.
As Bitcoin gains legitimacy through the regulation and integration in traditional portfolios, he can continue to throw its speculative image and evolve to a more stable strategic asset, the report added.
As volatility decreases and regulatory certainty increases, Bitcoin is becoming more attractive to pension funds, sovereign wealth funds and other long -term allocators.
Read more: the clarity law could be a change of game for the institutional adoption of Crypto: Benchmark
