If it were DeutscheBankBitcoin I would 100% agree with you .. or possibly if it wasn't an actually Country name I might have said there was bad faith involved (like MorganBitcoinStanley to me would be a red flag for bad faith) .. but in this case it is a country name being used .. as such the paramaters under which DB "should" be allowed to make claims is much narrower.
In the end there is potential danger if a judge incorrectly sees "Bank" and "BitcoinBank" as being the same thing. I see this claim being just as valid as "German Bank" filing a TM lawsuit against "GermanFoodBank.com".
Trademark laws can be fairly finicky from my personal understanding. Trademarks are not as broad as most think .. the trademark here is "Deusche Bank" in it's entirety ... the bank in no way can lay claims to anything else just because it includes either word on their own. In this case the domain does indeed contain both words .. but not together .. and in this specific case .. the words are used as their separate unique meanings .. not the collective meaning of "Deusche Bank".
I actually have issues with trademarks like "Deusche Bank" depending on the structure of the language. I can't be 100% because I don't speak German .. but let's say it was the same as English for "German Bank" .. then allowing a TM on "German Bank" might or might not hinder the ability of another bank to claim they were "The first German Bank" .. regardless as to if they were actually the first bank in Germany or not.
I personally also don't like Geo Trademarks because they can lead to confusion with actual government services and mislead people. Like TaxCanada could be interpreted as being Revenue Canada (government's tax department) .. but that's another matter for another discussion on another day .. lol.
Anyhow .. at the end of the day there certainly is some risk here
depending on the lingual interpretation of who is judging the case .. and quite frankly the actual domain just might not be even worth the time and energy to defend as I don't really see anyone actually buying the domain for any significant amount.
Also .. remember that all my comments are limited to my assumption the lingual context of this domain is similar to what the English equivalent is. "German Bitcoin Bank" is natural English .. if "Deusche Bitcoin Bank" isn't natural language flow in German then it no longer has the relative safety of being a generic.
Deutsche is not at all a made up word .. it means "German" in German
Bank is also Bank in German
ADDED: If Bitcoin is also Bitcoin in German (which I suspect) then the 3 facts combined really help your case in that it makes the domain a generic keyword domain (in German).
ADDED: If it wasn't the case, and languages were mixed than I'd say it was more of a brandable .. which in this specific case, ironically, I don't think would have been as good for you (although not necessarily enough to change a final opinion)
With a ultra generic name like "German Bank" they have to live with other people using legitimate similar names. German Bitcoin Bank is a keyword domain and I would think most would say that it looks suspicious .. but if it's a German Bitcoin Bank .. then there is complete legitimate use of the term.
....