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Deutsche Bank: Five major reasons for the fall of Bitcoin include market risk aversion and Fed's hawkish signals.

On November 24, Bitcoin just experienced its worst week since February, falling over 30% from last month's peak. Deutsche Bank analysts pointed out five key factors including: · Market risk aversion spreading - Bitcoin's trend is aligning with high-growth tech stocks (highly correlated with the Nasdaq 100 index), rather than being an independent “store of value” asset · Fed's hawkish signals - Powell warned that a rate cut in December is not a certainty (although New York Fed's Williams later released dovish comments) · Stagnation in encryption legislation process - Progress on the Senate's “Digital Asset Market Clear Act” has slowed · Institutional funds continue to flow out - Large investors are withdrawing funds · Long-term holders taking profits - Early coin holders are cashing in on gains.

BTC-0.14%
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