Bitcoin Plummets 30% as Deutsche Bank Explains the Causes

Metaverse Planet November 25, 2025Last Updated: November 25, 2025

1 minute read

Bitcoin has experienced its weakest weekly performance since February 2024, suffering a sharp decline in value over the past week. The cryptocurrency, which has pulled back by more than 30% from its November peak, remains under pressure due to a confluence of multiple factors, according to Deutsche Bank analysts.

The downturn in the cryptocurrency market is attributed to macroeconomic challenges, regulatory uncertainties, and shifts in investor behavior. The analysts highlighted five primary reasons to explain Bitcoin’s significant drop.

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Key Factors Behind the Sell-Off

Deutsche Bank analysts identified the following five fundamental reasons contributing to the sharp decline in Bitcoin’s price:

Macroeconomic Headwinds: Persistent high inflation and continued anticipation of higher-for-longer interest rates by global central banks have soured risk appetite across financial markets, including cryptocurrencies.

Regulatory Uncertainty: Increased scrutiny and regulatory uncertainty in major jurisdictions have spooked investors. Concerns over potential crackdowns on exchanges and stablecoins have added a layer of risk premium to the market.
Profit-Taking and Investor Behavior: Following the all-time highs reached in November, a significant amount of profit-taking occurred, especially among short-term traders and early investors, contributing to downward selling pressure.
Exchange-Traded Fund (ETF) Inflows Slowdown: The initial hype and large inflows into newly launched Bitcoin ETFs have slowed. This decrease in institutional buying momentum removed a key support factor for the price rally.
Liquidity Concerns: A general decrease in market liquidity across the crypto ecosystem amplifies price movements. When liquidity is thin, large sell orders have a disproportionately greater impact on the price.

The Road Ahead

While a 30% correction is severe, analysts note that such volatility is characteristic of the crypto market. The future performance of Bitcoin will largely depend on the easing of macroeconomic pressures and the development of a clearer global regulatory framework.