Bitcoin
Reading time: ~2 m
Experts from the blockchain analytics company K33 Research reported on the state of the bitcoin (BTC) market in May 2023. Wetle Lunde, a senior analyst at the firm, published a report analyzing the flagship cryptocurrency price chart and other technical and fundamental factors.
According to the expert, the decrease in the correlation of BTC with the value of shares of technology companies can revive the power of bitcoin as a tool for portfolio diversification. According to Lunde, a monthly unbalanced portfolio with a 3% allocation in BTC would outperform a classic 60/40 portfolio (60% stocks and 40% bonds) used as a benchmark. The indicator would be 6.9% compared to the peak of 2017.
Lunde also stressed that the state of the market is “carried to the extreme.” According to him, nothing remarkable happens in bitcoin trading. The researcher noted that trading volumes are at a 2.5-year low. In the last week, this indicator hit a record low for 7 days since December 2020.
In a broader review, the specialist said: he studied the consequences of BTC purchases announced by Tether management, the potential interest of institutional and retail investors to purchase bitcoins at a discount, as well as “special price” options.
Lunde also noted an interesting trend – for 5 Tuesdays in a row, Bitcoin was trading exclusively around the $27,000 mark. At the same time, digital currency quotes reached $30,000 at times. In addition, Lunde emphasized that the correlation with the Nasdaq 100 Index was at a 17-month low .
As of 15:50 Moscow time on May 26, 2023, the BTC rate was fixed at $26,488. The market capitalization of the digital currency was $512.63 billion. Daily transaction volumes amounted to $12.42 billion.
#K33 #Research #experts #report #bitcoin #market
