Bitcoin’s recent market slump may have come to an end, according to analysts from Standard Chartered. Geoffrey Kendrick, the Global Head of Digital Assets Research at the bank, expressed his views in a Tuesday note, suggesting that the recent sell-off resembles previous market corrections that occurred over the past few years. He pointed out that this downturn is akin to previous dips seen between March and September 2024, and again in January and April of this year. In these prior instances, Bitcoin experienced drops of around 30% before rebounding with notable increases of 124% and 69%, respectively, from the low points.
This latest downturn saw Bitcoin briefly fall below the $90,000 mark for the first time in seven months, hitting nearly 30% below its record high of $126,000 set just a month ago. Kendrick attributes the end of this bearish trend to significant shifts in market metrics, including a notable decline in the multiple to net asset value of MicroStrategy, a prominent Bitcoin treasury company. MicroStrategy’s modified net asset value recently dropped below 1, registering at 0.984.
Kendrick is optimistic that the worst is behind us, asserting that the data indicates the sell-off has concluded. He also expressed skepticism toward those who believe the halving cycle remains valid, predicting a potential rally as the year draws to a close.
Other analysts echo Kendrick’s sentiments about the market’s recovery. Tom Lee, Chair of Bitmine, stated in a CNBC appearance that the sell-off is displaying signs of exhaustion. Meanwhile, Matt Hougan, Chief Investment Officer at Bitwise, noted, “We’re nearing a bottom,” suggesting a potential turnaround might be on the horizon.
Despite this growing sense of optimism, not all market participants share the same view. Arthur Hayes, Chief Investment Officer at Maelstrom, warns that Bitcoin could decline as low as $80,000 before initiating a rise toward new heights. Hayes anticipates broader market movements, predicting that the S&P 500 and Nasdaq 100 may also face declines between 10% and 20%, which could delay Bitcoin’s recovery.
It is worth noting that Kendrick, Lee, Hougan, and Hayes have all previously forecasted a Bitcoin rally potentially reaching at least $200,000 by the end of the year. Current trading shows Bitcoin hovering around $91,500, leaving many in the market to speculate on its next moves amid this volatile landscape.
