Bitcoin (BTC) Price Outlook Stays Positive as Regulatory, Political Backdrop Improves: Deutsche Bank

A more favorable regulatory and political backdrop in the U.S., growing institutional adoption, and looser Federal Reserve monetary policy, are all expected to support the cryptocurrency's price, the report said.

German lender Deutsche Bank is bullish on bitcoin (BTC), predicting that the world's largest cryptocurrency will continue to trade at an elevated price in 2025, thanks to a favorable regulatory landscape in the U.S., growing institutional adoption, and looser Federal Reserve monetary policy.

A report by the bank on Wednesday said that the Trump administration's support for cryptocurrencies suggests the market's current bull run should continue, with ongoing presidential backing being key for the "continuation of crypto's golden era," analyst Marion Laboure wrote.

While President Trump didn't sign any crypto-related executive orders on his first day in office, the announcement that the Securities and Exchange Commission (SEC) will develop a regulatory framework for digital assets is a first step towards an overhaul of the industry, the report said.

The appointment of Paul Atkins as SEC chair is also indicative of a "shift towards an innovation-friendly approach," Deutsche Bank noted.

With the Markets in Crypto-Assets (MiCA) regulation coming into force in the EU in December, the European crypto market now enjoys increased legitimacy and security, the report added.

More clarity about the potential establishment of a U.S. bitcoin reserve could be forthcoming in the first quarter, the bank said.