K33 Research analyst Vettle Runde said in his latest review that December could be a key turning point for the crypto market.
According to Runde, the current market structure suggests strong upside potential, and Bitcoin’s current valuation reflects panic rather than fundamental factors. “The odds of the market breaking out to the upside are much higher than the odds of it crashing another 80%,” he said.
K33 argues that investors are focusing too much on distant threats, such as the potential risks posed by quantum computing and speculation that Strategy Inc. (MSTR) may sell its Bitcoin holdings. The research firm argues that the market is overestimating these concerns while underestimating recent positive signals.
These positive developments include the possibility of allowing the use of crypto assets in US 401(k) individual retirement accounts and the Federal Reserve moving towards a more supportive stance towards crypto.
K33’s valuation suggests that the crypto market is showing signs of structural recovery despite increased volatility in recent weeks. Analysts believe that the market’s excessive fear-based reaction will eventually stabilize, paving the way for a strong uptrend.
*This is not investment advice.
