Bitcoin’s surge past $123,000: Deutsche Bank shares 5 key takeaways from the rally

Investing.com -- Bitcoin crossed $123,000 on July 14, marking a 75% rise from November and prompting Deutsche Bank (ETR:DBKGn) to outline five drivers behind the rally. 

The bank noted that the surge came “in anticipation of the beginning of the White House’s ‘Crypto Week,’” where where the House of Representatives is set to vote on a market structure bill (CLARITY Act), a stablecoin bill (GENIUS Act), and a bill banning a U.S. central bank digital currency (Anti-CBDC Surveillance State Act).

Deutsche Bank said Bitcoin’s rise stems from “a convergence of macro and micro factors,” including “supportive regulation, increased institutional adoption and longer-term holding behaviour, persistent geopolitical and tariff uncertainty, ongoing de-dollarisation and technological developments.” 

The firm noted that volatility is historically low, suggesting “a gradual decoupling between Bitcoin’s spot prices and volatility.”

Deutsche Bank highlighted that a central driver is regulation. “Since Trump’s election, the U.S. administration’s pro-crypto stance has fostered regulatory clarity,” analysts said, pointing to efforts like the creation of a Bitcoin Strategic Reserve and the GENIUS Act. Globally, regulatory momentum is also building in the EU, U.K. and even China.

Institutional inflows have surged since spot Bitcoin ETFs were approved in January 2024. 

“U.S. Bitcoin ETFs attracted over $35bn in cumulative inflows in 2024, exceeding $50bn by mid-2025,” said Deutsche Bank. BlackRock’s iShares Bitcoin Trust alone holds about $80 billion.

Other factors are said to include increasing corporate adoption and a shift away from the U.S. dollar. 

“We have started witnessing a de-dollarisation trend,” Deutsche Bank said, citing falling dollar reserves and rising interest in Bitcoin as an alternative asset.

Finally, advances in technology, such as the Lightning Network and stronger custody solutions, are making Bitcoin more scalable and secure. Deutsche Bank expects declining volatility and broader adoption to continue lifting Bitcoin’s legitimacy and performance.