Standard Chartered analyst Geoff Kendrick told clients on Friday that he believes cryptocurrency asset prices have hit the lowest level in the current cycle and is looking for confirmation from three indicators: Strategy’s report that he bought more Bitcoin last week; cryptocurrency funds (ETFs) recorded positive inflows on Friday; and oil prices continue to fall.
“We have now seen low prices for crypto assets this cycle. This would be $59k per BTC (53% from a high of $126k),” Kendrick said in a brief note to clients on Friday. The largest cryptocurrency was last traded at around $63,704 on Sunday, according to CoinMarketCap data.
Depending on how investors read strategy chief Michael Saylor’s near-weekly tweet posted earlier Sunday, there could be the first sign Kendrick is watching for.
“I’m still adding dots,” Saylor said message accompanying the now familiar dot or bubble chart that the chief strategy officer often includes in his social media posts announcing upcoming BTC purchases.
Michael Saylor’s Sunday tweet had more than half a million views as of noon EST. Source: Michael Saylor on X.com
As for other BTC low indicators cited by global head of digital asset research StanChart, on Friday Bitcoin ETFs saw one-day net inflows of $85.84 million, with investors moving money into five funds, while eight of the U.S. BTC ETFs saw no net change, according to data tracked by SoSoValue.com. Crude oil futures fell for the second day in a row on Friday, according to data from Yahoo Finance.
Kendrick concluded his note by saying, “Winter is over. Welcome back to crypto spring.”
Related: Bitcoin sales necessary for Strategy’s digital lending business, says Saylor
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 U.S. Securities and Exchange Commission, offloading 32 BTC, which seemed to go against Saylor’s long-term “never sell your Bitcoin” rule. mantra. He defended the sale, arguing that the ability to sell the asset was necessary to continue issuing “digital credit.”
“If the company’s policy is that we will not sell Bitcoin, the credit will have no value and the capital will have no value,” he told Cointelegraph at the BTC conference in Prague.
Cointelegraph’s Ciaran Lyons (left) and Strategy founder Michael Saylor (right) at BTC Prague. Source: Cointelegraph
Saylor said Bitcoin treasury companies must retain the ability to sell shares when necessary to support dividend-paying securities and other BTC-backed credit products.
Warehouse: Bitcoin, the ‘canary in the coal mine’, demand for XRP transactions drops by 91.5%: market movements
