Standard Chartered's Jeffrey Kendrick claims Bitcoin has hit its low at $59,000, signaling an end to the crypto winter and a potential recovery.
Standard Chartered's analyst, Jeffrey Kendrick, has indicated that Bitcoin may have hit its low point at $59,000, suggesting that the worst of the recent market downturn is over. Kendrick attributes the recent price correction to macroeconomic uncertainties, reduced risk appetite, and capital flight from cryptocurrency investments, but believes these negative factors have largely been accounted for by the market.
Signs of Recovery in the Crypto Market
Kendrick highlighted that the decline to $59,000 was marked by investor capitulation and a significant dip in market sentiment, which are often indicative of local market bottoms. He confidently stated, “The winter is over. Welcome back to crypto spring,” suggesting that the market is poised for a new growth phase, making current prices appealing for long-term investors.
Strong Institutional Interest
The bank continues to see robust institutional demand as a critical factor supporting Bitcoin's price, fueled by inflows through spot ETFs and corporate treasury investments. Kendrick noted that public companies, like Strategy, are still acquiring Bitcoin to bolster their reserves, despite ongoing market volatility.
Positive Long-Term Outlook for Bitcoin
Standard Chartered maintains a bullish long-term outlook for Bitcoin, projecting it could reach $200,000 by 2026, driven by increased institutional investment and broader adoption of digital assets in traditional finance. Kendrick acknowledged the short-term volatility but emphasized that fundamental factors suggest a sustained upward trajectory for Bitcoin.
Contrasting Views from BIT Analysts
In contrast, analysts from the crypto platform BIT warn that Bitcoin may not have reached its bottom yet, predicting further downward pressure in the coming weeks. They believe Bitcoin is in the final phase of its bear cycle, potentially dropping to between $50,000 and $55,000 as part of an Elliott Wave corrective pattern.
BIT analysts noted that market sentiment indicators are reflecting levels characteristic of the concluding stages of bear markets. They pointed to the Fear and Greed Index, which is nearing values seen at the bottom in 2022, and highlighted Bitcoin's realized price of approximately $54,600 as a critical benchmark, as prices typically do not remain below this level for long.
Macroeconomic Factors Influencing Market Recovery
Analysts believe that a reversal in inflation and easing financial conditions will be essential for the onset of a new bull cycle, similar to what was observed in 2022. BIT expects that finalizing the market bottom could take one to three months, with confirmation of the end of the crypto winter likely to occur if Bitcoin exceeds its 21-week moving average and shows improvement in long-term cyclical indicators.
Additionally, Galaxy Research has projected a potential minimum for this market cycle between $40,000 and $46,000.
