Bitcoin Bottom In? Standard Chartered Sees Crypto Recovery Ahead

Bitcoin may have already reached its lowest point in the current market cycle, according to Geoffrey Kendrick, Head of Digital Assets Research at Standard Chartered. The analyst believes improving investor demand, renewed corporate buying, and easing macroeconomic pressures are creating favorable conditions for a stronger Bitcoin recovery.

Kendrick recently told clients that Bitcoin's drop to around $59,000 likely marked the market bottom. His confidence increased after three key indicators aligned: Strategy (formerly MicroStrategy) resumed Bitcoin purchases, U.S. spot Bitcoin ETFs returned to positive inflows, and oil prices continued to decline.

Strategy, the world's largest corporate Bitcoin holder, revealed it acquired an additional 1,587 BTC last week, reinforcing institutional confidence in the leading cryptocurrency. At the same time, U.S. spot Bitcoin exchange-traded funds recorded net inflows of $86 million on Friday, ending a period of significant outflows that had weighed on market sentiment.

Lower oil prices have also helped ease concerns about inflation and rising bond yields, factors that previously pressured risk assets, including cryptocurrencies. As a result, Kendrick believes market conditions are becoming increasingly supportive for Bitcoin and the broader digital asset sector.

In a note to investors, Kendrick declared, "Winter is over. Welcome back to crypto Spring," signaling a more optimistic outlook for the market. He highlighted the growing importance of spot Bitcoin ETFs, which have become a major source of demand since their U.S. launch in January 2024.

The overall crypto market has also benefited from regulatory progress and expanding institutional participation. Recent easing of restrictions on crypto derivatives in the United States has strengthened sentiment. Additionally, crypto exchange Kraken recently launched perpetual futures trading for U.S. customers, reflecting growing demand for regulated digital asset products.

Despite the improving outlook, Kendrick said Bitcoin must surpass the $83,000 level reached in early May to confirm a sustained bullish trend and invalidate concerns about lower highs during recent rallies. Bitcoin was trading near $66,300 at the time of writing, up roughly 1% over the previous 24 hours.

Coinbase CEO Brian Armstrong echoed the positive sentiment, stating that Bitcoin may have already bottomed near $60,000 and that he remains highly bullish on the cryptocurrency's long-term prospects. If Bitcoin breaks above key resistance levels, analysts believe the case for a new uptrend will become significantly stronger.