Market pessimism is a safety net against further crashes, K33 says

K33 Research argues that the market's current "unique pessimism" is acting as a safety net preventing a deeper crash. According to CoinDesk, the firm noted that while Bitcoin is declining after failing to break its 200-day moving average of $83,000, the scenario is unlike the leverage-driven collapses of 2014, 2018, and 2022. K33 diagnosed $60,000 as the bottom for this cycle. The research firm explained that investors are showing an overly defensive stance, and this "unique pessimism" is similar to characteristics seen at market bottoms. As evidence, the 30-day average funding rate for Bitcoin has been negative for 81 consecutive days. This indicates that even when prices rebounded, traders were overwhelmingly pessimistic, betting on declines (shorts) rather than rises (longs). Additionally, the annualized basis for CME Group's Bitcoin futures has fallen below 2.5%.