What to know:
- Kendrick calls $59K the bottom and keeps targets at $100K BTC and $4K ETH.
- Heavy ETF redemptions and SpaceX IPO liquidity drain caused the dip; ETF inflows may confirm recovery.
- Network upgrades and DApp growth may help Ethereum outperform Bitcoin near-term.
Standard Chartered’s digital assets research head, Geoffrey Kendrick, recently reiterated his institutional viewpoint on the crypto market and mentioned that the recent market fall could be a cycle bottom.
While briefing clients on the latest market scenario, he stated his year-end targets of $100,000 for Bitcoin and $4,000 for Ethereum and referred to the recent selloff as the end of the current “crypto winter.”
The report serves a technical e-learning purpose for professional investors who are engaged in monitoring blockchain and digital asset developments.
ETF Flows and Market Liquidity
The decline of Bitcoin towards $59,000 is linked by Kendrick to various short-term pressures. One factor is the selling volume, which came from heavy spot Bitcoin ETF redemptions. Another is the temporary reduction of risk appetite across the markets due to liquidity constraints linked to the SpaceX IPO.
Besides, macro stress being eased is considered by the analyst as one of the supporting factors for institutional investors re-engaging in the market. He is confident that a bounce-back in ETF inflows will be the confirmation of the $59,000 level as the bottom of the cycle.
Also Read: Standard Chartered Projects $4 Trillion Onchain Asset Market by 2028
Ethereum’s Relative Outlook
Standard Chartered’s digital assets research head keeps price targets unchanged for both cryptocurrencies but based on the potential developments on the Ethereum blockchain. Also he hints that it could beat Bitcoin over time.
This prediction is in part due to the Ethereum network enhancements and the growing popularity of decentralized apps. Fundamentally, the crypto sector has different factors internal to each project which can affect their performance, this is what is Most of all shown in the comparison.
Also Read: Standard Chartered Targets Global Crypto Custody Growth with Zodia deal
Beyond Short-Term Price Moves
Kendrick’s insights highlight a careful yet favorable stance towards digital currencies, where on one side it sees the possible benefits from the new ETF demand and on the other side it recognizes liquidity and macroeconomic environment as the main challenges.
For those interested in the blockchain market this piece works as a reminder that make sure to focus on the flow of money, economic indicators, and the particular characteristics of the different cryptocurrencies.
Also Read: Standard Chartered Moves to Bring Zodia Custody In-House: Report
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