StanChart looks for 3 signs of BTC bottom, including Strategy’s Monday news
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: Strategy’s 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.
“We have now seen the low in crypto asset prices for the cycle. That would be USD59k for BTC (53% down from USD126k high),” 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 Saylor’s near-weekly tweet issued earlier on Sunday, The first sign that Kendrick is watching for may have come.
“Still adding dots,” was Saylor’s 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.
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 StanChart’s 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: “Winter is over. Welcome back to crypto Spring.“
Related: Bitcoin sales are necessary for Strategy's digital credit business, Saylor says
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 US Securities and Exchange Commission, offloading 32 BTC in a move that appeared at odds with Saylor's long-running “never sell your Bitcoin“ mantra. He defended that sale, saying the ability to sell the asset is necessary to continue issuing “digital credit.“
“If 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,” he told Cointelegraph at the BTC Prague conference.
Cointelegraph’s 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: Bitcoin, the ‘canary in the coal mine,’ XRP transaction demand falls 91.5%: Market Moves
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Morgan Stanley: The expansion value of BHP South Australia copper mine is still underestimated, on-site inspection may become a catalyst for revaluation, “Overweight” rating maintained.
Morgan Stanley released a research report, maintaining an "Overweight" rating on BHP Group Limited (Australian shares) and a target price of 68 AUD.
Deutsche Bank remains bullish on Palo Alto Networks (PANW.US) ahead of earnings: Q1 results expected to be solid, platform advantages will help expand market share.
Deutsche Bank's latest research report predicts that Palo Alto Networks will deliver solid performance in the first quarter, with all key metrics exceeding market expectations, although the margin of outperformance may narrow compared to the previous quarter.
On the eve of Anthropic (ANT.US) IPO: $19 billion in passive buying on the way, will “SpaceX-style” index arbitrage be repeated?
From SpaceX to Anthropic: Giant new listings adopt a new approach.
Amidst extramarital affair scandal and Nvidia’s stock plummet, “The Big Short”: Short-term may be an “excellent trade,” but long-term remains bearish
Burry admitted that if he did not already hold a short position, the sharp drop caused by the scandal might be a good contrarian buying opportunity—but he himself made it clear he would not participate. The fatal risk lies in the possibility that this turmoil could trigger regulatory investigations into its "mafia-style" business practices and export controls. Combined with the risks of over-investment in AI, its competitive advantage is expected to quickly narrow, so he remains firm in his short position.
Crypto prices
More
