Standard Chartered Analyst Declares Crypto Winter Over
"Bitcoin's price has stabilized after a significant drop, sparking hopes of a market rebound. Analysts point to key drivers behind the turnaround."
Standard Chartered analyst Geoffrey Kendrick declared the crypto winter over, pinpointing $59,000 as the cycle low for bitcoin. This assessment comes after bitcoin touched $59,375 on June 5. Kendrick, who holds a $100,000 bitcoin price target by the end of the year, identified two core drivers supporting the market turnaround: recent spot bitcoin ETF selling and the potential impact of a G7-related peace deal between the US and Iran on oil prices.
Kendrick noted that recent weeks saw some of the sharpest spot bitcoin ETF selling since inception, with total redemptions exceeding $5.72 billion since the second week of May. He also observed that ETF holders have been liquidating their positions to free up cash to participate in the SpaceX initial public offering (IPO). The intense market demand is already showing up on digital asset exchanges, such as Hyperliquid, where SpaceX's crypto contracts recently traded with high volume and a valuation of up to 2.4 trillion.
The launch of the SpaceX IPO may bring the specific selling pressure to a close, according to Kendrick. Additionally, a potential G7-related peace deal between the US and Iran could help stop oil prices from escalating. Lower oil prices would subsequently cool the rising US Treasury yields, easing macro pressure on crypto markets. To confirm that the market floor is secure, Kendrick is watching three specific metrics over the coming days.
One key metric is an announcement on Monday showing that Michael Saylor's Strategy (MSTR) purchased more bitcoin this week. Kendrick is also looking for a return to net-positive daily inflows for US spot bitcoin ETFs this Friday, as international oil prices continue to fall. The price of Brent crude fell to about $87 a barrel, while West Texas Intermediate crude was around $85 a barrel as US President Donald Trump spoke of a likely peace deal with Iran.
However, the situation remains uncertain, with Trump later making a U-turn in a post on Truth Social, saying the deal made public was not what had been agreed and warning Tehran's officials to quickly "get their act together." This development highlights the complex geopolitical landscape and its potential impact on the crypto market.
The crypto market's potential rebound has significant implications for investors and the broader financial landscape. If Kendrick's assessment is correct, it could mark a turning point for the market, with bitcoin and other cryptocurrencies potentially regaining lost ground. However, the market remains highly volatile, and various factors could influence its trajectory.
In the context of the broader crypto market, the recent developments highlight the complex interplay between geopolitical events, market sentiment, and investor behavior. The launch of the SpaceX IPO and the potential peace deal between the US and Iran are just two examples of the many factors that can impact the crypto market.
As the market continues to evolve, it is essential to monitor key metrics and developments closely. Kendrick's analysis provides valuable insights into the current state of the market and the potential drivers of a rebound. However, it is crucial to approach the market with caution, considering the various factors that can influence its trajectory.
In conclusion, the crypto winter may be over, according to Standard Chartered analyst Geoffrey Kendrick. The recent developments in the market, including the sharp spot bitcoin ETF selling and the potential impact of a G7-related peace deal between the US and Iran, suggest that the market may be poised for a rebound. However, the situation remains uncertain, and it is essential to continue monitoring key metrics and developments closely to navigate the complex and volatile crypto market.
