GuShiio.com Although the pro-cryptocurrency Trump administration is a positive factor in the long term, current market uncertainties remain and traders should remain cautious until a clear direction emerges.
Author: Brian McGleenon
Compiled by: Tim, PANews
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Bitcoin remains low volatility, and risk-averse traders are driving down yields, trading volumes and futures premiums. However, K33 Research said this situation generally does not last long.
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Analyst Vetle Lunde pointed out that although the pro-cryptocurrency Trump administration is a positive factor in the long run, current market uncertainties still exist and traders should remain cautious until a clear direction emerges.
Low Bitcoin volatility continues
According to data from K33 Research, Bitcoin remains in a state of low volatility, falling slightly 2% weekly. Risk-averse traders drove earnings, volatility and trading volume to multiple-month lows.
Vetle Lunde, director of research at K33, pointed out that while the pro-cryptocurrency Trump administration is good news for Bitcoin and the industry as a whole in the long run, short-term uncertainty is curbing market activity.
Lunde said in a report on Tuesday: “Bitcoin’s various indicators, such as trading volume, yields, options premiums, and ETF capital flows, are weakening, and these data are back to levels unseen before the election. In this downturn, volatility has fallen to multi-month lows.”
Lunde emphasized that 37% of the top 100 companies in the U.S. stock market currently have a higher monthly volatility than Bitcoin, a level not seen since October 2023. However, he went on to urge that such periods of low volatility generally do not last long and traders should be prepared for sudden changes in prices.
He added: Overall risk aversion suggests traders are ready for downside volatility, while current moderate leverage levels suggest that the potential threat of serial liquidations is small. 34;
CME Bitcoin futures suggest market changes are imminent
Lunde’s analysis of CME Bitcoin futures shows that the futures premium rate has dropped below 5% in the near future, which rarely occurs. Looking back at data from 2021 to 2025, low premiums usually occur simultaneously with weak market performance, which may occur due to the long-term bear market in 2022.
In futures trading, the basis refers to the spread between futures and spot prices of the same asset. When futures prices are higher than spot prices, there is a premium, which usually indicates bullish sentiment; when futures prices are lower than spot prices (a premium), it indicates a downward trend.
He again emphasized that Bitcoin often performs best when the basis is strong, and urged that markets should be cautious in the current uncertainty.
