Geoffrey Kendrick, head of digital assets research at Standard Chartered, has expressed optimism regarding Bitcoin’s market trajectory, suggesting it may have hit its cycle low around $59,000. This assessment follows a series of positive developments, including increased investor interest and corporate purchases.
Kendrick’s analysis comes after MicroStrategy, a significant corporate Bitcoin holder, resumed its purchases, acquiring an additional 1,587 BTC last week. Additionally, U.S. spot Bitcoin exchange-traded funds (ETFs) reported net inflows of $86 million, reversing a trend of outflows that had plagued the market. The decline in oil prices has also alleviated inflation concerns, contributing to a more favorable environment for cryptocurrencies.
As of now, Bitcoin is trading at approximately $66,300. Kendrick noted that a decisive breakout above the early May high of around $83,000 would serve as a strong indicator of a new upward trend. He remarked, “Winter is over. Welcome back to crypto Spring,” signaling a shift in market sentiment.
The recent resurgence in ETF inflows is particularly noteworthy. Since their introduction in January 2024, U.S. spot Bitcoin ETFs have become a key demand driver for the cryptocurrency. Kendrick observed that the recent sell-off was among the most significant since their launch, suggesting that some investors may have liquidated positions to free up cash for the anticipated SpaceX IPO.
In addition to these developments, the regulatory landscape for crypto has also shown signs of improvement. Last month, the easing of restrictions on crypto derivatives in the U.S. and increased institutional participation have bolstered market sentiment. Notably, the crypto exchange Kraken recently launched perpetual futures for U.S. clients, expanding the range of derivatives available onshore.
Despite the positive indicators, Kendrick cautioned that Bitcoin must break the $83,000 barrier to dispel concerns about its recent pattern of lower highs during rallies. Coinbase CEO Brian Armstrong echoed Kendrick’s sentiments, stating he believes Bitcoin may have found its bottom near $60,000 and remains optimistic about its future.
If Bitcoin successfully surpasses the $83,000 mark, Kendrick believes the case for a new uptrend will be significantly strengthened, potentially marking a new chapter for the cryptocurrency.
Geoffrey Kendrick from Standard Chartered believes Bitcoin has reached its cycle low around $59,000, citing positive investor flows and corporate purchases. With recent ETF inflows and falling oil prices, he anticipates a potential upward trend if Bitcoin breaks above $83,000.