PANews December 17 News, according to CoinDesk, K33 Research Director Vetle Lunde stated that as the end of the year approaches, due to Bitcoin’s underperformance compared to other asset classes this quarter, asset managers adjusting their portfolios to maintain target asset allocations may benefit from Bitcoin. Earlier this year, Bitcoin underperformed the S&P 500 in the first quarter and then started to rise in the second quarter. Conversely, when Bitcoin outperformed stocks in the second quarter, a decline occurred in early Q3. So far, Bitcoin’s performance in Q4 has lagged the S&P 500 by as much as 26%, indicating a large-scale rebalancing is imminent.
Lunde said that fund managers with established Bitcoin allocation targets may adjust their positions before the end of the year, potentially leading to significant capital inflows on the last trading day of this year and in early January next year. He also pointed out that although prices are stabilizing, market participants remain reluctant to take on new risks. CME derivatives trading activity is near its annual low, with Bitcoin futures open interest around 124,000 BTC; perpetual contract market funding rates are near neutral, with small changes in open interest, indicating a lack of short-term directional confidence. Last week, spot cryptocurrency trading volume dropped 12%, further confirming low trader participation as the year-end approaches.
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