Geoffrey Kendrick, head of digital assets research at Standard Chartered, says Bitcoin It is possible that the economy has already bottomed out for the current market cycle, arguing that a combination of improving investor flows, corporate buying and easing macroeconomic pressures point to a stronger recovery ahead.
The latest call marks a change in sentiment after several months in which crypto markets grappled with growing geopolitical tensions, concerns about inflation and persistent outflows from Bitcoin spot exchange-traded funds (ETFs) in the United States.
Last Friday, Kendrick told clients he believed bitcoin’s decline to around $59,000 represented the bottom of the cycle. At the time, however, he highlighted three developments he wanted to see before having more confidence in this view: further bitcoin purchases by Strategy (MSTR), a return to positive ETF inflows, and continued weakness in oil prices.
By Monday, all three had materialized.
Strategy, the largest Bitcoin holding company, revealed that it purchased an additional 1,587 BTC last week. US spot bitcoin ETFs saw net inflows of $86 million on Friday after a series of notable redemptions. Oil prices also continued to fall, easing concerns that rising energy costs could push up inflation and bond yields.
