After a lively trading morning, Bitcoin (BTC) mostly hovered around the $87,500 mark, maintaining an increase of about 2% over the past 24 hours. Major altcoins like Ether (ETH), XRP, and Solana (SOL) also reported similar positive trends.

Crypto-related stocks recovered after a sharp drop earlier in the week. Strategy (MSTR) rose by about 3%, Circle increased by 10%, while Coinbase (COIN) edged up by 1%.

“Customers are in a cautiously optimistic state,” Josh Barkhoarder, Head of Sales at FalconX, said. “In the short term, most market expectations are that crypto will continue to hover until a clear catalyst appears. Therefore, they maintain core positions with bitcoin and hold cash in other allocations.”

Bitcoin may benefit from portfolio rebalancing activities.

As the fiscal year draws to a close, bitcoin may benefit from having underperformed other asset classes during the quarter, according to Vetle Lunde, Head of Research at K33. This could prompt asset managers to rebalance portfolios to maintain regulatory allocation weights.

Lunde referenced a previous precedent: when BTC underperformed the S&P 500 in Q1, prices increased in the following quarter; conversely, when BTC outperformed stocks in Q2, the market corrected at the beginning of Q3.

As of now in Q4, bitcoin has underperformed the S&P 500 by 26%, indicating a high likelihood of a significant rebalancing.

"Funds with a fixed BTC allocation target may adjust their weights at the end of the year, potentially creating additional capital flows in the final trading sessions of the year and extending into early January," Lunde commented.

Traders remain cautious about risk.

Although prices have stabilized, market sentiment remains cautious, according to K33. Derivatives activity on the CME continues to hover near yearly lows, with open contracts for BTC futures around 124,000 BTC.

In the perpetual contract market, the funding rate fluctuates around a neutral level and open contracts remain nearly unchanged, indicating a lack of confidence in a clear short-term trend.

The volume of spot crypto trading has also declined, down 12% as of last week, reinforcing the view that many traders remain on the sidelines as the trading year gradually comes to a close.

https://coinphoton.com/bitcoin-kem-xa-co-phieu-trong-quy-iv-mo-ra-trien-vong-tich-cuc-cho-thang-1-k33.html