Bitcoin has faced a challenging week, declining 14% to around $62,375, with concerns rising that further losses could occur if it drops below the critical $60,000 threshold. Amidst this downturn, Standard Chartered's head of digital assets research, Geoff Kendrick, offers a more optimistic view, identifying three pivotal factors that could stabilize the market.
The first factor involves the actions of Strategy (MSTR), which previously sold Bitcoin only to repurchase a significantly larger amount shortly thereafter. Kendrick anticipates a similar move could happen again, suggesting that if Strategy buys back up to 100 times its recent sale of 32 BTC, it might indicate that the market has reached its bottom.
Secondly, Kendrick notes that despite a net outflow of $5 billion from U.S. spot ETFs over the past three weeks, the overall holdings have shown resilience. Since the beginning of 2024, these ETFs have attracted cumulative net inflows of $54.2 billion, indicating stronger structural integrity than previously feared.
