Standard Chartered analyst Geoff Kendrick on Friday told clients that he believes crypto asset prices have seen the low in the current cycle and he is looking for confirmation in three indicators: Strategyโs reporting that it bought more Bitcoin last week; crypto exchange-traded funds (ETF) saw positive inflows on Friday; and, oil prices continue to break lower.
โWe have now seen the low in crypto asset prices for the cycle. That would be USD59k for BTC (53% down from USD126k high),โ Kendrick said in a brief note to clients on Friday. The biggest crypto was last trading on Sunday at about $63,704, according to CoinMarketCap data.
Depending on how investors read Strategy chief Michael Saylorโs near-weekly tweet issued earlier on Sunday, The first sign that Kendrick is watching for may have come.ย
โStill adding dots,โ was Saylorโs message that accompanied the now-familiar dot, or bubble, chart that the Strategy executive frequently includes in his social media posts teasing forthcoming BTC purchases.ย
Michael Saylor’s tweet on Sunday had more than a half a million views by mid-afternoon, ET. Source: Michael Saylor on X.com
As for the other indicators of a BTC bottom that StanChartโs global head of digital assets research cited, Bitcoin ETFs on Friday posted one-day net inflow of $85.84 million, with investors moving money into five of the funds while eight of the US-traded BTC ETFs had no net change, according to data tracked by SoSoValue.com. Crude oil futures fell on Friday for the second straight day, according to Yahoo Finance data.
Kendrick closed his note with: โWinter is over. Welcome back to crypto Spring.โ
Related: Bitcoin sales are necessary for Strategy’s digital credit business, Saylor says
Surprise Bitcoin sale defended as โnecessaryโ defense of digital credit
Strategy disclosed its first reported Bitcoin sale since 2022 in a June 1 filing with the US Securities and Exchange Commission, offloading 32 BTC in a move that appeared at odds with Saylor’s long-running โnever sell your Bitcoinโ mantra. He defended that sale, saying the ability to sell the asset is necessary to continue issuing โdigital credit.โ
โIf the company’s policy is that we won’t sell the Bitcoin, then the credit won’t have value and the equity won’t have value,โ he told Cointelegraph at the BTC Prague conference.
Cointelegraphโs Ciaran Lyons (left) and Strategy founder Michael Saylor (right) at BTC Prague. Source: Cointelegraph
Saylor said that Bitcoin treasury companies must retain the ability to sell holdings when necessary to support dividend-paying securities and other BTC-backed credit products.
Magazine:ย Bitcoin, the โcanary in the coal mine,โ XRP transaction demand falls 91.5%: Market Moves
