Bitcoin market fears are overblown as policy shifts open medium-term upside, K33 says

K33's Head of Research, Vetle Lunde, asserts that the current fear surrounding Bitcoin's market correction is overblown, driven by exaggerated long-horizon risks rather than immediate threats. Lunde suggests Bitcoin is trading at "deep value" relative to equities, making material upside more plausible than previous 80% drawdowns. The report dismisses three major fear narratives—quantum computing risk, potential Strategy forced selling, and Tether's reserve backing—as issues far in the future. Instead, K33 points to medium-term positive catalysts, including expected 401(k) guidance by February 2026 allowing crypto exposure, the potential passage of the Clarity Act accelerating tokenization, and the possibility of a 'pro-crypto dove' leading the Federal Reserve. Given Bitcoin is near major support, K33 concludes the upside potential outweighs current sentiment-driving risks, advocating for a "long and bold" exposure.

(Source：The Block)