Deutsche Bank's Major Report: Bitcoin's Sharp Drop Is a Crisis of Confidence, Not a Market Collapse

Recently, Deutsche Bank, a leading global financial institution, released an in-depth report on the Bitcoin market, clearly stating that the recent decline in Bitcoin prices reflects a loss of market confidence rather than a collapse of the market structure itself.

This perspective provides investors with a professional view to calmly assess the current situation amid ongoing turbulence in the global cryptocurrency market and a more than 40% drop from last October’s peak.

Market Appearance: Decoupling of Bitcoin’s Decline from Gold and Stocks

Since reaching a cyclical high in October 2025, the Bitcoin market has experienced several months of downward pressure. According to data in the Deutsche Bank report, Bitcoin prices have fallen over 40% from their peak and have recorded declines for four consecutive months.

Meanwhile, traditional safe-haven assets like gold have performed quite differently, rising over 60% during the same period, and the stock market has also seen some rebound. This stark contrast highlights a key change: the correlation between Bitcoin and traditional assets like gold and stocks is significantly weakening.

This decoupling has been especially evident in recent market performance. In early February, Bitcoin briefly fell below $60,000, hitting a 15-month low. At the same time, gold prices continued to strengthen, and traditional stock markets sought new balance points amid macroeconomic outlook adjustments.

In-Depth Analysis: Three Drivers of Confidence Loss

Deutsche Bank’s report analyzes in detail three core factors contributing to the loss of market confidence, which together exert downward pressure on the current Bitcoin market.

First is the continued outflow of institutional funds. The report specifically notes that since October 2025, the US spot Bitcoin ETF has seen outflows exceeding $12 billion.

This large-scale withdrawal directly reflects institutional investors’ cautious outlook on Bitcoin’s short-term prospects and is the most obvious signal of a shift in market sentiment.

Second is the thinning of market liquidity. As institutional investors withdraw and retail investor interest wanes, both market depth and liquidity are significantly affected. This contraction in liquidity not only amplifies price volatility but also increases trading costs, further weakening market attractiveness.

Finally, regulatory uncertainty persists. Globally, the regulatory framework for cryptocurrencies is still evolving, and unclear policy directions increase market participants’ wait-and-see attitude. The weakening of regulatory momentum, especially with slowed policy progress in key markets like the US, directly impacts institutional and retail investment decisions.

Data Perspective: Current Bitcoin Status on Gate Exchange

As of February 6, 2026, the spot trading price of Bitcoin against USDT on Gate Exchange is approximately $64,883.8. This level has significantly retreated from the historical high in October 2025 but remains above the key psychological support level of $60,000.

Market data shows that Bitcoin’s 24-hour trading volume on Gate remains healthy, indicating that despite price pressure, the underlying trading activity remains active.

In terms of price volatility, Bitcoin’s 24-hour high on Gate reached $71,971.9, with a low of $59,980.6, reflecting considerable fluctuation and an unstable market sentiment.

This wide-ranging volatility is a typical sign of insufficient market confidence—investors are oscillating between fear and greed, causing sharp price swings in a short period.

Structural Stability: Why the Market Foundation Has Not Collapsed

Contrasting the fragile market confidence is the fact that the Bitcoin market’s fundamental structure remains solid. The Deutsche Bank report explicitly states that the current decline is not due to a collapse of the market structure.

This judgment is based on multiple dimensions of observation. The fundamentals of the Bitcoin network remain healthy. Hash rate stays at record highs, and network security has not been affected by price declines; developer activity continues to be active, and ecosystem development is steadily progressing.

Second, the infrastructure of the market has been improved. After years of development, global cryptocurrency trading, custody, and clearing infrastructure are quite mature. Take Gate as an example: as a leading global cryptocurrency exchange, it provides a stable and secure trading environment, supporting over 4,300 cryptocurrencies, with liquidity ranking among the top worldwide.

Finally, the framework for institutional participation has been established. Although short-term funds are flowing out, the approval and operation of Bitcoin ETFs have created standardized channels for institutional involvement. This structural change will not reverse due to short-term market fluctuations.

Future Outlook: Pathways and Opportunities for Restoring Confidence

In the face of the current market environment, investors’ focus naturally shifts to the future—how will market confidence be rebuilt? While the Deutsche Bank report does not provide a specific timeline, it highlights several key factors that could help restore confidence.

Progress in regulation will be the primary catalyst. Clarification of regulatory frameworks in major global markets (especially the US) will eliminate significant uncertainties for institutional investors and create conditions for capital to flow back.

Changes in the macroeconomic environment may also provide support. If global inflation pressures ease and economic growth expectations improve, the overall environment for risk assets will improve, and Bitcoin’s appeal as a high-risk, high-reward asset will re-emerge.

Technological innovation and adoption progress are also intrinsic drivers. The maturity of Bitcoin layer 2 solutions, expansion of the Lightning Network, and increased acceptance of Bitcoin payments by entities will enhance its utility and value proposition.

For ordinary investors, the current market environment is both challenging and full of opportunities. The sharp price correction offers a more attractive entry point for long-term investors, and extreme market pessimism often signals an approaching turning point.

On platforms like Gate, investors can not only conveniently trade Bitcoin but also access rich educational resources and market analysis tools to better grasp market trends and make rational decisions.

Future Outlook

As market sentiment gradually stabilizes and structural factors improve, Bitcoin is likely to find a new equilibrium in the $60,000 to $70,000 range.

For long-term investors, the current price adjustment may be an excellent opportunity to accumulate positions. On a secure and reliable trading platform like Gate, investors can more confidently position themselves, waiting for the return of market confidence.