The Bitcoin market remains stable despite declining volatility and trading volumes. Recent research by K33 reveals reasons for this phenomenon and offers advice for traders.
Current Bitcoin Market State
Bitcoin continues to experience activity downturns, showing an acceptable 2% weekly drop amidst declining volatility. During the K33 report launch, research head Vetle Lunde noted the influence of the Trump administration on the industry. However, the market is presently clouded with uncertainty, making it languid. In a report on Tuesday, Lunde stated that Bitcoin metrics are softening across all areas—volumes, yields, options premiums, and ETF flows have sunk to levels unseen since the elections.
Fallen Premiums and Market Impact
The research also indicated that CME Bitcoin Futures premiums have recently dropped past 5%, a rare occurrence. Data from 2021 to 2025 shows that low premiums consistently coincide with weaker market performance. In futures trading, the basis refers to the difference between an asset’s futures and spot prices. A premium occurs when futures prices exceed spot prices, often indicating bullish sentiment, while a discount suggests bearish conditions.
Trading Strategies and Weekly Outlook
The short-term timeline shows that the $BTC price continues to roll over after breaking through the top of the descending wedge. If this downtrend continues, the next horizontal support is at $94,000, and the bottom range is $92,000. Just below this is the major ascending trendline that stretches back to the 2021 bull market. On the weekly $BTC chart, one can see how prices have gone sideways over extended periods in the current bull market. The position is very healthy and will probably lead to a higher top than if the price keeps climbing.
Despite the current sluggish conditions in the Bitcoin market, experts believe this is a temporary phase. Traders should be prepared for potential changes in volatility and prices.
