Standard Chartered’s senior crypto analyst, Geoffrey Kendrick, believes the recent market downturn in Bitcoin has ended.
He argues that Bitcoin’s fall to around $59,000 last week marked the bottom of the current cycle.
In a note highlighted by Wu Blockchain, Kendrick reaffirmed his year-end targets of $100,000 for Bitcoin and $4,000 for Ethereum. He said that “crypto winter is over” and that a new “crypto spring” has begun.
Why Standard Chartered Believes the Bottom Is In
Bitcoin’s decline to roughly $59,000 represented a correction of about 53% from its October all-time high of $126,000. Market data shows Bitcoin briefly fell to around $59,108 on June 5 before rebounding toward $64,000.
Kendrick said the selloff was due to several temporary factors. One of the biggest was heavy selling in U.S. spot Bitcoin ETFs. Since the second week of May, cumulative ETF outflows have exceeded $5.72 billion, putting significant pressure on prices.
He also pointed to the highly anticipated IPO of SpaceX. According to Kendrick, some ETF investors may have sold Bitcoin to free up capital for the offering. The stock began trading on Nasdaq on Friday and rose about 26% above its IPO price shortly after listing.
Improving Macro Conditions Could Support Crypto
Kendrick also cited easing macroeconomic concerns as a reason for his bullish outlook. He said a potential peace agreement between the United States and Iran could help prevent further increases in oil prices.
Lower energy costs could reduce pressure on U.S. Treasury yields and create a more favorable environment for risk assets, including cryptocurrencies.
However, uncertainty remains. U.S. President Donald Trump later suggested that the publicly discussed deal did not accurately reflect the final agreement. He also urged Iranian officials to “get their act together.”
What Could Confirm the Recovery?
Kendrick said he is monitoring several indicators that could confirm the market bottom is firmly in place.
One key signal would be an announcement that Strategy purchased more Bitcoin during the week. He is also watching for U.S. spot Bitcoin ETFs to return to net-positive daily inflows.
Another positive sign would be continued declines in oil prices, which could improve market conditions.
While Kendrick expects Bitcoin to reach $100,000 by year-end, he believes Ethereum may outperform Bitcoin in the near term. He maintained his $4,000 target for the second-largest cryptocurrency.
At press time, Bitcoin is trading at $63,700, up 1.01% over the past 24 hours and marking a 4.7% rebound on the weekly timeframe. Meanwhile, Ethereum is trading at $1,667. To reach Kendrick’s $4,000 target, ETH would need to rally by nearly 2.5x from current levels, compared with roughly 1.57x for Bitcoin to reach $100,000.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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