Bitcoin is a ‘strong relative buy’ with the sell-off nearly saturated, K33 says
K33 argues that Bitcoin's recent 36% downturn creates a strong long-term buying opportunity despite current risk-off sentiment.Summary
K33, through its Head of Research Vetle Lunde, suggests that Bitcoin's recent 36% decline from all-time highs represents a sentiment-driven overshoot, creating a compelling long-term entry point. Bitcoin has significantly underperformed the Nasdaq recently, a pattern usually associated with crypto-specific shocks, though current correlations are high. Lunde believes the current pricing disconnects from underlying fundamentals, labeling BTC a "strong relative buy" for long-term investors, especially considering positive policy catalysts like the Clarity Act.
Furthermore, K33 indicates the sell-off is nearing saturation, evidenced by extreme trading volumes during the drop to $80,500, which suggests intense buy-side demand. Derivatives data shows aggressive long unwinding, and ETP flows indicate "elevated panic" via significant redemptions. While K33 has partially re-entered the market, they remain cautious about a full commitment due to the potential for a 'w-shaped recovery' pattern.
(Source：The Block)