Standard Chartered analyst Geoff Kendrick said crypto asset prices have likely hit the low for the current cycle.
This assessment comes as institutional investors seek confirmation on market timing before adjusting their investment positions. Identifying a definitive bottom is critical for determining whether the current price action represents a sustainable recovery or a temporary bounce.
During a client briefing on Friday, Kendrick said he is monitoring three specific indicators [1] to confirm a Bitcoin bottom. Among these signals, he is specifically watching the impact of Strategy’s recent Bitcoin purchase [1].
Kendrick suggested that the period of decline is ending. "Winter is over," he said [2].
He said that crypto prices have likely seen the low for the current cycle [3]. The analyst is using these indicators to provide guidance to clients on how to position their portfolios as the market transitions out of its downward trend.
By tracking these three markers [1], the firm aims to validate the shift in market sentiment. This approach allows the analyst to move from a theoretical low to a confirmed bottom based on observable market behavior, and institutional activity.
“"Winter is over."”
The shift in outlook from a major financial institution like Standard Chartered suggests a growing institutional appetite for risk in the crypto market. By seeking a 'confirmed bottom' through specific indicators, analysts are attempting to apply traditional financial rigor to the volatile digital asset space to reduce the risk of 'catching a falling knife' during a cycle low.
