Deutsche Bank: The Bitcoin plunge may be triggered by five major factors including market risk aversion, hawkish signals from the Federal Reserve, and capital outflows

Bitcoin has experienced its worst week of the year, dropping over 30% from last month's peak.

Deutsche Bank analysts pointed out the following five main reasons: market risk aversion, hawkish signals from the Federal Reserve (a rate cut in December is not guaranteed), stagnation in cryptocurrency regulation and the slowdown in the progress of the U.S. Senate's "Digital Asset Market Transparency Act," outflow of institutional funds (large investors are withdrawing their capital), and long-term holders taking profits, with early holders cashing out their gains.