Standard Chartered analyst Geoff Kendrick told clients on Friday that he believes crypto asset prices have bottomed in the current cycle and is looking for confirmation from three indicators: Strategy’s report of buying more Bitcoin last week; crypto exchange-traded funds (ETFs) saw positive inflows on Friday; and oil prices continue to fall.
“We have now seen the lowest crypto asset price for the cycle. This would be $59,000 for BTC (53% down from the high of $126,000),” Kendrick said in a brief note to clients on Friday. The largest crypto was trading last Sunday at around $63,704, according to data from CoinMarketCap.
Depending on how investors read chief strategy officer Michael Saylor’s near-weekly tweet posted earlier Sunday, the first sign Kendrick is watching may have arrived.
“I always add points,” Saylor said. message which accompanied the now-familiar dot or bubble chart that the strategist frequently includes in his social media posts teasing upcoming BTC purchases.
Michael Saylor’s tweet on Sunday had been viewed more than half a million times by mid-afternoon ET. Source: Michael Saylor on X.com
As for other indicators of a BTC bottom cited by StanChart’s global head of digital asset research, Bitcoin ETFs saw a one-day net inflow of $85.84 million on Friday, with investors moving money into five of the funds while eight of the U.S.-traded BTC ETFs had no net change, according to data tracked by SoSoValue.com. Crude oil futures fell for the second straight day on Friday, according to data from Yahoo Finance.
Kendrick closed his note with: “Winter is over. Welcome to crypto Spring.”
Related: Bitcoin Sales Necessary for Strategy’s Digital Credit Business, Says Saylor
Surprise Bitcoin sale defended as “necessary” defense of digital credit
Strategy disclosed its first reported Bitcoin sale since 2022, in a June 1 filing with the U.S. Securities and Exchange Commission, unloading 32 BTC in a move that seemed at odds with Saylor’s long-standing principle “never sell your Bitcoin.” mantra. He defended the sale, saying the ability to sell the asset is necessary to continue issuing “digital credit.”
“If the company policy is not to sell Bitcoin, then the credit will have no value and the equity will have no value,” he told Cointelegraph at the BTC conference in Prague.
Cointelegraph’s Ciaran Lyons (left) and Strategy founder Michael Saylor (right) at BTC Prague. Source: Cointelegraph
Saylor said Bitcoin treasury companies must retain the ability to sell holdings if necessary to support dividend-paying securities and other BTC-backed credit products.
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