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Bitcoin Volatility To Decline As Regulatory Uncertainty Lifts
Deutsche Bank pundits compared the historical arc of gold adoption to what is currently happening with Bitcoin.
“History appears to be repeating itself. Like Bitcoin, gold was once subject to skepticism, suspicion, and demand speculation,” they said in the report.
However, as BTC matures and regulatory uncertainty in key markets, such as the United States and the UK, subsides amid a wave of adoption among traditional investors and financial institutions, the premier cryptocurrency’s volatility, long seen as an obstacle to reserve status, is declining, the bank’s analysts posited.
To support their argument, they highlighted Bitcoin’s 30-day volatility dropping to historic lows in August, even as the price smashed its all-time record high — an indication that the cryptocurrency is decoupling from its speculative past.
 
“This combination suggests we may be witnessing the start of a gradual decoupling between Bitcoin’s spot prices and volatility as the crypto’s integration into portfolios is maturing,” the Deutsche analysts explained.
Bitcoin On Track To Join Gold As A Recognized Reserve Asset
The Deutsche Bank researchers further noted that both Bitcoin and gold should be able to coexist on central bank balance sheets by 2030 as complementary hedges against inflation and geopolitical risk, owing to their scarcity and low correlation to other assets.
As investors continue searching for alternatives to traditional assets, Bitcoin could evolve from a speculative bet into a legitimate pillar of the global financial system, Deutsche Bank noted.
Deutsche Bank has previously asserted that Bitcoin is set to become “the 21st century gold.”
Interestingly, the bank’s analysts said neither Bitcoin nor gold is likely to replace the U.S. dollar, as governments will act to protect the sovereignty of fiat currencies.
Meanwhile, Deutsche Bank is considering entering the stablecoin market, including potentially issuing its own token. The bank is also reportedly planning to launch a crypto custody service in 2026 with Bitpanda and Taurus, expanding its digital asset initiatives in Europe as more banks increasingly expand their presence in digital assets.