Bitcoin had an exaggerated drop and there is an opportunity for long term investors, says K33

Source: PortaldoBitcoin Original Title: Bitcoin had an exaggerated drop and there is an opportunity for long-term investors, says K33 Original Link: https://portaldobitcoin.uol.com.br/bitcoin-teve-queda-exagerada-e-ha-oportunidade-para-investidores-de-longo-prazo-diz-k33/ Bitcoin is at an attractive point for investors seeking long-term exposure to the digital asset, according to research and investment firm K33. For the company, the 36% drop from all-time highs represents a more emotional than fundamental move, characterizing a “sentiment-driven exaggeration”.

“We see the current relative price of BTC against other risk assets as a significant disconnection from the underlying fundamentals and consider BTC a strong relative buy at current rates for any long-term focused investor,” stated K33's head of research, Vetle Lunde. He also highlights that, in recent weeks, Bitcoin has performed worse than stock indices like the Nasdaq in most sessions — a rare pattern — reinforcing the perception that the depreciation has gone beyond what economic factors would justify.

Furthermore, Lunde points out that there are signs that the downward movement may be losing strength. One of the main indications is the jump in trading volumes during the most intense moments of the correction. When the price of bitcoin touched around $80.5 thousand on November 21, spot trading reached approximately $14.3 billion, with over 169 thousand BTC being exchanged — one of the largest volumes of the year. This level of activity, the analyst reminds, tends to appear only during periods of strong market stress, usually marking significant tops or bottoms.

Before October, days with more than $10 billion in trading occurred only at decisive moments for the price. The fact that this same behavior has repeated itself four times during the current decline suggests that investors are taking advantage of the lows to rebuild positions, absorbing a good part of the selling pressure. For Lunde, this intense struggle between buyers and sellers in deeper correction areas is typical of markets close to saturation of the downward movement.

The executive of K33 also cites structural factors that support his constructive view. According to him, the current market is very different from previous cycles: large global banks are advancing in products linked to digital assets, driven by new regulations such as the Clarity Act, while regulatory changes expected in the coming months are likely to broaden institutional access to Bitcoin.