Deutsche Bank (DB) says bitcoin’s (BTC) selloff signals a loss of conviction, not a broken market

Deutsche Bank analysts argue that Bitcoin's recent price decline reflects a loss of conviction among institutions and regulatory uncertainty, rather than a systemic market failure. They point to three main pressures: sustained institutional outflows from U.S. spot Bitcoin ETFs, a breakdown in traditional market relationships (like its divergence from gold), and stalled regulatory momentum.

The bank views the current phase as a necessary reset, testing Bitcoin's ability to mature beyond speculative gains. While Bitcoin has underperformed gold significantly in 2025, and sentiment data shows fading enthusiasm, Deutsche Bank cautions against overstating the decline, noting the asset remains substantially higher than early 2023 levels. The lack of regulatory clarity has increased volatility, but the overall message is that the market is retreating from speculative highs, requiring renewed institutional and regulatory support to regain footing.

(Source：CoinDesk)