Unprecedented Lethargy in Bitcoin: K33 Said It Could Go Even Further! - Coin Bulletin

**Bitcoin (BTC) market is sluggish with low volatility and weak trading volumes, according to the K33 Research report, investors are acting cautiously due to uncertainty.

Bitcoin continued to stay in a low volatility regime in recent weeks and recorded a 2% decline for the week. According to the K33 Research report, returns, volatility, and trading volumes plummeted to multi-month lows due to risk-averse investors.

The market stagnation, despite expectations that a pro-crypto Trump administration in the U.S. could have positive long-term effects, is due to short-term uncertainties keeping investors cautious.

Research Director K33 Vetle Lunde pointed out that all metrics in the Bitcoin market have weakened, emphasizing that transaction volumes, returns, option premiums, and exchange-traded fund (ETF) flows have dropped to pre-election levels.

According to Lunde's analysis, 37% of the top 100 companies in the US have shown higher volatility than Bitcoin in the last 30 days. This rate was last seen in October 2023. However, Lunde said that low volatility periods generally do not last long and that the market should be prepared for a sudden move.

**Lunde, who says 'The general risk aversion tendency shows that investors are ready for downward volatility,' stated that leverage levels are relatively low and the risk of large-scale liquidation seems low for now.

CME Bitcoin futures contracts indicate weakness in the market

Lunde, who examines Bitcoin futures on the Chicago Mercantile Exchange (CME), pointed out that premiums have fallen below 5%. Historical data shows that periods of low premiums between 2021-2025 generally coincide with weak market performance. This situation may be related to the ongoing effects of the long bear market in 2022.

In futures markets, “basis” refers to the difference between the futures price and the spot price. If the futures price is trading above the spot price, this usually indicates a bull market, whereas the opposite suggests an expectation of a bear market.

Lunde emphasized that Bitcoin performs better in a strong premium regime and caution is needed in the current market conditions. "As uncertainty continues, we recommend careful movement until a clear directional signal is received."