Standard Chartered analyst Geoff Kendrick told clients on Friday that he believes crypto asset prices have fallen in the current cycle and is looking for confirmation in three indicators: Strategy’s report that it bought more Bitcoin last week; crypto exchange-traded funds (ETFs) saw positive inflows on Friday; and oil prices continue to fall.
“We’ve now seen crypto asset lows for the cycle. That would be $59K for BTC (53% down from a high of $126K),” Kendrick said in a brief note to clients on Friday. The largest cryptocurrency was last traded on Sunday at a price of around $63,704, according to data from CoinMarketCap.
Depending on how investors read strategy chief Michael Saylor’s near-weekly tweet earlier Sunday, the first sign Kendrick has been waiting for may have arrived.
“I’m still adding dots,” Saylor said message which followed the now-famous dot or bubble chart that Strategy’s CEO often includes in his social media posts teasing upcoming BTC purchases.
Michael Saylor’s tweet on Sunday had more than half a million views by mid-afternoon, ET. Source: Michael Saylor on X.com
In other BTC bottom indicators cited by StanChart’s global head of digital asset research, Bitcoin ETFs posted a one-day net inflow of $85.84 million on Friday, with investors moving money into five funds, while eight U.S.-traded BTC ETFs had no net changes, according to data he tracks. SoSoValue.com. Crude oil futures fell for a 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 essential to Strategy’s digital lending business, Saylor says
The sudden sale of Bitcoin is defended as a “necessary” defense of digital credit
Strategy disclosed its first reported sale of Bitcoin since 2022 in a June 1 filing with the US Securities and Exchange Commission, offloading 32 BTC in a move that appeared to contradict Saylor’s long-held “never sell your Bitcoin” mantra. He defended the sale, saying the ability to sell assets was necessary to continue issuing “digital credit.”
“If the company’s policy is that we will not sell Bitcoin, then the credit will have no value and the equity will have no 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 Bitcoin treasury companies must retain the ability to sell stakes when needed to support dividend-paying securities and other BTC-backed credit products.
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