Bitcoin fear is exaggerated... K33: "High likelihood of long-term rise"

Source: DigitalToday Original Title: Bitcoin Fear Is Exaggerated… K33: “High Potential for Long-Term Growth” Original Link:

An analysis suggests that the fear in the Bitcoin market stems from exaggerated long-term risks rather than actual threats.

According to blockchain media, cryptocurrency research firm K33 stated in its December outlook report that Bitcoin is in an “undervalued stage” compared to stocks, and the likelihood of another 80% decline cycle as seen in the past is low.

K33 specifically pointed out that an overheated derivatives market, concentrated selling by long-term holders, and broad supply distribution have triggered the recent downturn. As ETF holders also turned into net sellers, Bitcoin recorded its weakest performance compared to the Nasdaq. However, K33 emphasized that the three main fears dominating the market are exaggerated.

First, the quantum computing risk. K33 noted that around 6.8 million BTC could theoretically be vulnerable, but the actual risk is a distant future issue that can be resolved through developer collaboration.

Second, the possibility of strategic selling of Bitcoin. While Michael Saylor left the door open for some sales, K33 assessed that, having secured $1.44 billion to maintain dividends for 21 months, the likelihood of short-term sales is low.

Third, Tether’s reserve issue. Tether earns $500 million per month from US Treasury yields and claims to face no short-term liquidity crisis, holding $7 billion in excess capital and $23 billion in retained earnings against $184.5 billion in stablecoin liabilities.

On the contrary, they saw policy changes as likely to drive Bitcoin’s mid-to-long-term growth. US 401(k) guidelines may allow crypto inclusion by February 2026, and the passage of the CLARITY Act(CLARITY) is expected to accelerate tokenization and the use of bank collateral. Additionally, the possibility of a crypto-friendly figure heading the Fed(Fed) could lower capital costs and boost discussions on Bitcoin strategic reserves.

K33 concluded that Bitcoin currently sits at a strong support level, and its upside potential far outweighs the long-term risks.