Standard Chartered sees Bitcoin bottom forming

Standard Chartered analyst Geoff Kendrick believes cryptocurrency markets have already established a cycle bottom, pointing to Bitcoin's decline to around $59,000 as the likely low of the current downturn.

Kendrick told clients that he is monitoring three key indicators to confirm the recovery thesis: continued Bitcoin purchases by Strategy, sustained inflows into spot Bitcoin exchange-traded funds and further declines in oil prices.

“We have now seen the low in crypto asset prices for the cycle,”

Kendrick said, adding that Bitcoin's drop to $59,000 represented a decline of roughly 53% from its previous high near $126,000.

One of those signals may already be emerging after Strategy executive chairman Michael Saylor posted his familiar Bitcoin tracking chart on social media alongside the message “Still adding dots,” a phrase often interpreted by investors as a precursor to another Bitcoin purchase announcement.

Bitcoin ETFs also recorded positive momentum, attracting approximately $85.8 million in net inflows on Friday, with capital flowing into several US-listed funds despite broader market uncertainty.

Meanwhile, crude oil prices declined for a second consecutive day, a development Kendrick views as supportive for risk assets because lower energy prices can ease inflation pressures and improve investor sentiment.

Kendrick concluded his note by declaring that:

“Winter is over. Welcome back to crypto Spring,”

Signalling his view that the prolonged crypto downturn may be ending.

The outlook comes shortly after Strategy disclosed its first reported Bitcoin sale since 2022, selling 32 BTC in June, with Saylor arguing that maintaining the ability to sell Bitcoin is necessary to support future digital credit products and dividend-paying securities backed by the asset.

At the time of reporting, Bitcoin price was $65,629.07.