Standard Chartered’s global head of digital asset research, Geoff Kendrick, declared the crypto market has hit its bottom following Bitcoin’s recent plunge to nearly $59,000. This 53% drawdown from October’s peak represents what Kendrick terms the “most frigid conditions” of the current cycle.
Kendrick points to two primary catalysts for a turnaround: potential geopolitical de-escalation between the U.S. and Iran ahead of the G7 summit, and the historic $1.75 trillion initial public offering of SpaceX. Rising oil prices previously pressured risk assets by boosting Treasury yields; however, West Texas Intermediate crude recently fell 1.5% to $86 per barrel, suggesting easing energy costs.
While Bitcoin ETFs have seen approximately $5 billion in net outflows since mid-May, Kendrick attributes some selling to investors liquidating positions to fund participation in Musk’s IPO. He argues that confirming this market inflection point requires sustained declines in oil prices, renewed ETF inflows, and continued accumulation by Strategy (formerly MicroStrategy).
Despite the recent stagnation, Standard Chartered maintains a bullish long-term outlook, having issued a $100,000 price target for Bitcoin earlier this year. The bank views the current consolidation as a necessary reset before the next leg up.