Vetle Lunde, head of research at K33, suggests that the recent large-scale leverage liquidation in Bitcoin presents a favorable opportunity for asset accumulation. Despite a loss of momentum following last week's flash crash, Lunde believes the current market decline is constructive, with Bitcoin stabilizing after a significant leverage reset. He notes that while short-term liquidity may remain low, such liquidations often indicate a market bottom, making current prices attractive for increasing BTC spot positions.
Lunde highlights that the clearing of leverage, combined with expectations of loose monetary policies, high institutional demand, and ETF-related catalysts, creates a conducive environment for the gradual accumulation of Bitcoin. He advises patience as traders recover from forced selling, suggesting that the market conditions are ripe for strategic investment in Bitcoin.
K33 Research: Bitcoin Leverage Liquidation Favors Asset Accumulation
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