Bitcoin Market Enters ‘Lethargic State’, Says K33

The bitcoin market has entered a ‘lethargic state’, a phenomenon not seen since Donald Trump’s victory in the US elections, according to K33 Research.

“Volumes, yields, option premiums, and ETF flows have reached levels unseen since the elections, while volatility has dropped to multi-month lows,” the report states.

Currently, shares of 37 out of the 100 largest US companies exhibit higher price volatility (30 DMA) than bitcoin. The last occurrence of such a trend was in October 2023.

Analysts suggest that the crypto-friendly Trump administration acts as a long-term ‘tailwind’, yet uncertainty is restraining market activity.

Such periods tend to last, and traders should prepare for sudden changes, they warned.

“We advise caution until a clear directional signal emerges. […] Moderate leverage indicates lower risks of liquidation cascades,” the experts concluded.

Experts at CryptoQuant have suggested that the leading cryptocurrency might enter a new bearish phase.

Earlier, CoinDesk identified three risks that could cause bitcoin to lose the $90,000 level.