Geoffrey Kendrick, head of Standard Chartered’s digital asset research unit, said Bitcoin likely sees the bottom in the current market cycle around $59,000. According to the analyst, the recovery in investor inflows, company acquisitions and the easing of macroeconomic pressures may pave the way for a stronger recovery in the cryptocurrency market.
Developments that support optimism in the market
Kendrick’s assessment comes after weakening market sentiment in recent months due to rising geopolitical tensions, inflation concerns and ongoing outflows from U.S.-listed spot Bitcoin ETFs. In a note to clients last Friday, he said Bitcoin’s decline to around $59,000 could be the bottom of this cycle.
The analyst listed three conditions that would give him greater confidence in this view. These were Strategy’s resumption of Bitcoin purchases, the return of net inflows in US spot Bitcoin ETFs, and the continued weakness in oil prices. The company is known as one of the institutional investors with the largest Bitcoin reserves among publicly traded companies.
It was seen that these developments took place in a short time. Strategy announced last week that it purchased another 1,587 BTC. US spot Bitcoin ETFs recorded a net inflow of $86 million on Friday. The decline in oil prices continued; This eased concerns that inflation and bond yields might rise again due to energy costs.
While summarizing the change in the market outlook, Kendrick commented, “Winter is over, spring is back for crypto.”
ETF flows and price thresholds are monitored
Spot Bitcoin ETFs have become one of the most significant sources of demand for the asset since they began trading in the US in January 2024. Kendrick stated last week that the recent sales were one of the steepest waves since the launch of these products. He stated that the view that some investors are cashing in to participate in the expected SpaceX IPO is based only on limited observations.
Signs of recovery are also evident in the broader crypto market outlook. The easing of some regulatory hurdles for crypto derivatives in the US last month and increased institutional participation supported market sentiment. The Kraken exchange’s start to offer permanent futures products to US customers was one of the latest examples of activity in this field.
On the other hand, Bitcoin continues to attract the attention of publicly traded companies that want to include this asset on their balance sheets. While there are observers in the market who point out that lower peak levels have been formed in recent rise attempts, Kendrick said that Bitcoin must rise above the $ 83,000 level it saw in early May in order for this concern to disappear.
| Indicator | Level |
|---|---|
| The cycle bottom Kendrick points to | $59,000 |
| Strategy’s latest acquisition | 1,587 BTC |
| US spot Bitcoin ETF net inflow | $86 million |
| Level to watch for new bullish confirmation | $83,000 |
| Bitcoin price at the time of the news | $66,300 |
Similar evaluation from Coinbase
At the time of writing, Bitcoin was trading at $66,300. The asset is up about 1% in the last 24 hours. According to Kendrick, if there is a clear break above $83,000, the thesis that a new uptrend has begun will gain significant strength.
Coinbase CEO Brian Armstrong shared a similar opinion on Monday. Armstrong said Bitcoin may have bottomed out around $60,000 and remains optimistic about the asset. As one of the largest cryptocurrency exchanges in the USA, Coinbase is considered an important market indicator for institutional and individual investors.
Brian Armstrong stated that he thinks Bitcoin may have bottomed around $60,000 and that he maintains his positive view on the cryptocurrency.
