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 looking for 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,” said K33's head of research, Vetle Lunde. He also points out 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 more than 169 thousand BTC being exchanged — one of the highest volumes of the year. This level of activity, the analyst recalls, usually appears only during periods of strong market stress, typically marking significant peaks or troughs.

Before October, days with over $10 billion in trades had only occurred during decisive moments for the price. The fact that this same behavior has repeated four times during the current decline suggests that investors are taking advantage of the lows to rebuild positions, absorbing much of the selling pressure. According to Lunde, this intense battle between buyers and sellers in deeper correction areas is typical of markets close to the saturation of the downward movement.

The executive of K33 also cites structural factors that support his constructive outlook. 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 tend to expand institutional access to Bitcoin.