Why $60K Is the Ultimate Bitcoin Floor: K33 Research

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The ultimate price floor for Bitcoin (BTC) in the current market cycle is $60,000, according to K33 Research, the research arm of K33 digital asset brokerage company.

In a May 19th publication, the crypto market intelligence firm supported its argument by citing crypto market support from heightened institutional adoption.

Bitcoin will not drop below $60K, cushioned by institutional investment

Notably, Bitcoin institutional investors comprise public and private corporations, spot ETF issuers, and fund managers. It also includes systematic hedge funds and trading firms, as well as pension funds and endowments.

According to CryptoQuant’s Bitcoin Fund Holdings Chart, the cryptocurrency’s holdings have grown steadily among institutions. The period post-2024 is seeing the most considerable growth. 

Spot Bitcoin Exchange-Traded Fund (ETF) is overwhelmingly the most popular cryptocurrency product offered by institutions, with BlackRock’s iShares Bitcoin Trust holding 817,138.2 BTC. Interestingly, BlackRock itself held no BTC until January 2024.

Source: CoinMarketCap

As for publicly listed corporate holders, Strategy leads the race, with 843,739 BTC following a period of continuous accumulation starting in August 2020.

That said, recent geopolitical unrest has caused Bitcoin ETF issuers to scale back. Bitcoin itself saw $982 million in outflows in the week ending on May 15. Still, their positions remain considerable as compared to previous cycles.

According to Ventle Lunde, head of research at K33 Research, these conditions make a 80% price drop like the one witnessed in 2018 and 2022 highly unlikely. Instead, BTC is likely to consolidate between $60,000 – $75,000 without capitulation beyond that.

Liquidity is king

Arthur Hayes supports Bitcoin’s bullish theory this year, saying $125,000 is a “foregone conclusion.” In a post stating “liquidity is king,” he argues that printing money to fund wars, service debt, and fight AI-driven inflation will eventually fuel the coin’s rally to new highs.

With BTC trading at $77,442 at the time of writing, and having dropped to $59,600 this year, it remains to be seen how geopolitical and economic factors will impact its future movements.