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$BTC Presents Strong Buy After 36% Decline, K33 Says

$BTC's sharp underperformance versus equities has created a significant disconnect from fundamentals, according to K33 Research. Head of Research Vetle Lunde stated the 36% downturn from all-time highs presents a compelling long-term entry point for investors.

The cryptocurrency has underperformed the Nasdaq in 70% of sessions over the past month, a pattern only seen a handful of times since 2020. $BTC now trades 30% weaker relative to the index compared to Oct. 8 levels. Previous stretches of similar underperformance coincided with crypto-specific shocks, including Mt. Gox sales, Grayscale outflows, and contagion effects.

Lunde emphasized that today's market structure differs materially from prior cycles. Crypto initiatives from Tier-1 banks enabled by the Clarity Act and upcoming policy catalysts may broaden access to the cryptocurrency. K33 views current relative pricing to other risk assets as a significant disconnect from underlying #fundamentals.

The sell-off appears close to saturation based on extreme trading activity during $BTC's drop to $80,500 intraday low on Nov. 21. Spot volumes reached $14.3 billion that day, the sixth-highest of the year, with 169,523 $BTC traded.

Correlations have surged with $BTC closely tracking equity moves but suffering sharper declines on down days and weaker rebounds on up days. This pattern reflects persistent selling pressure in a generally risk-off #environment, according to the research firm.