Standard Chartered’s head of digital asset research, Geoffrey Kendrick, says bitcoin may have already set its low for the current market cycle, arguing that a combination of improved investor flows, corporate buying and easing macroeconomic pressures point to a stronger recovery ahead.
The latest call marks a shift in sentiment after months in which crypto markets struggled with rising geopolitical tensions, inflation concerns and continued outflows from US spot bitcoin exchange-traded funds (ETFs).
Last Friday, Kendrick told clients he believed bitcoin’s drop to around $59,000 represented the cycle low. At the time, however, he outlined three developments he wanted to see before he gained more confidence in that view: renewed bitcoin buying by Strategy (MSTR), a return to positive ETF inflows and continued weakness in oil prices.
On Monday, all three had become a reality.
Strategy, the largest corporate owner of bitcoin, revealed that it bought an additional 1,587 BTC last week. U.S. spot bitcoin ETFs had net inflows of $86 million on Friday after a series of notable redemptions. Oil prices also continued to move lower, reducing concerns that higher energy costs could push up inflation and bond yields.
