Key facts
- Standard Chartered believes the crypto market is nearing a bottom.
- Bitcoin has fallen over 20% in the last nine days.
- Ether is down 26% over the past month.
- Spot Bitcoin ETF holdings are seen as structurally resilient.
- An anticipated MicroStrategy buyback is viewed as a positive sign.
- Standard Chartered maintains year-end targets of $100,000 for Bitcoin and $4,000 for Ether.
Standard Chartered's Global Head of Digital Assets Research, Geoffrey Kendrick, believes the cryptocurrency market is nearing a bottom, despite a painful week of price declines. Bitcoin was trading around $64,000, down over 20% in the past nine days. Ether was trading around $1,780, down 26% over the past month. Kendrick's analysis suggests that structurally resilient spot Bitcoin ETF holdings and an anticipated large buyback by MicroStrategy provide a compelling case that the worst of the current sell-off is over. He noted that ETF holdings have remained broadly flat, indicating structural strength, and anticipates MicroStrategy will repurchase a significant amount of Bitcoin following its recent sale of 32 BTC. Kendrick also contextualized futures liquidations at around $1.5 billion, comparable to previous events, and acknowledged residual downside risk below $60,000. He maintained his year-end targets of $100,000 for Bitcoin and $4,000 for Ether.