A 30% pullback from its peak offers an attractive long-term entry point for the leading cryptocurrency, as investor sentiment has shifted dramatically. This is according to a report by K33 Research.
Vetle Lunde, Head of Research at the firm, noted that over the past month, Bitcoin has lagged behind Nasdaq stocks in 70% of sessions. Such a scenario has occurred only a few times since 2020.
Currently, Bitcoin is approximately 30% weaker relative to the stock index than it was at the beginning of October.
According to Lunde, the last three significant periods of Bitcoin lagging behind Nasdaq coincided with market upheavals: the Mt.Gox sell-off and the German government in July 2024, a significant outflow from Grayscale in January, and the “contagion effect” in June 2022.
However, the current correlation between Bitcoin and Nasdaq shows a different nature, the researcher added. The cryptocurrency is closely tied to stock movements but experiences sharper declines on down days and weaker rebounds during upswings. According to the analyst, this trend reflects sustained selling pressure in an environment where risk-taking is not favored.
Lunde emphasized that today’s Bitcoin market structure is significantly different from previous cycles, pointing to first-tier banks’ crypto initiatives.
“The current relative price of digital gold compared to other risky assets diverges significantly from fundamental indicators, which is why we consider this position a favorable option for purchasing at current rates for any long-term investor,” the expert stated.
In November, the ratio of long to short positions on the leading cryptocurrency on Binance exceeded 3.8. This indicates traders’ belief in a Bitcoin rebound.