Bitcoin’s Q4 Underperformance Sets Stage for Rebalancing
- Bitcoin BTC -1.52% ’s Q4 underperformance suggests a January buying opportunity.
- Vetle Lunde of K33 Research leads analysis.
- Institutional BTC demand remains stagnant, impacting market dynamics.
Vetle Lunde of K33 Research reports that Bitcoin’s underperformance against stocks in Q4 2025 may trigger rebalancing-driven buying in January 2026.
This analysis suggests increased Bitcoin purchases could reverse its Q4 decline, impacting investor portfolios and potentially stabilizing the cryptocurrency market.
Bitcoin’s Q4 2025 saw significant underperformance, lagging the S&P 500 by 26%. In this context, K33 Research’s Vetle Lunde proposes potential rebalancing-driven buying in January 2026, indicating a shift in market dynamics.
Vetle Lunde, CIO of K33 Research, highlighted Bitcoin’s market performance against equities as a potential setup for Q1 portfolio rebalancing. This is based on historical patterns observed in cryptocurrency and traditional stock markets.
“Bitcoin’s Q4 weakness can set the stage for potential rebalancing-driven inflows in January 2026.” – Vetle Lunde, CIO, K33 Research
The cryptocurrency market, particularly Bitcoin, faced notable pressure during Q4 2025, impacting institutional investors. Bitcoin’s price dropped significantly, stabilizing between $90,500 and $93,000 by early December.
Bitcoin’s decline is within a broader financial context characterized by gains in the technology and AI sectors. Institutions maintaining approximately 12% of Bitcoin’s supply hint at possible continuation of current market conditions.
Historical data suggest that Bitcoin often witnesses inflows when it significantly trails equities. Such patterns could encourage portfolio adjustments and potential upward momentum in early 2026.
The market’s current volatility could lead to shifts in investment strategies, with some institutions potentially adjusting holdings. These changes may be driven by historical data and forecasts from influential financial analysts and researchers.
