Bitcoin’s Market Slump Appears to Have Ended
Bitcoin’s recent downturn seems to be over, according to Standard Chartered’s Global Head of Digital Asset Research, Jeffrey Kendrick. He noted in a report on Tuesday that this decline resembles previous significant drops from the past few years, particularly those from March to September 2024 and from January to April earlier this year.
Kendrick suggests that the recent corrections share a similar impact, with Bitcoin experiencing falls of around 30% before rebounding sharply—124% and 69% in the earlier instances.
After a steep two-week decline, Bitcoin dipped below $90,000 for the first time in seven months, trading about 30% lower than its peak of $126,000 reached just last month.
He believes the sell-off has concluded, highlighting a collapse in metrics used by firms like Bitcoin treasury operator Strategy, which recently showed a value close to 1, now at 0.984. “I think this indicates that the downtrend has ended,” Kendrick remarked, challenging those who believe the halving cycle still holds accurate predictions. He anticipates a rally as the year draws to a close.
Other analysts share a similar outlook. For example, Tom Lee, the chair of Bitmine, noted during a CNBC segment that the market’s steep decline shows signs of fatigue. Investment manager Matt Hogan also expressed optimism by stating, “We’re nearing the bottom.”
However, the outlook isn’t entirely bright. Arthur Hayes, an investment manager at Maelstrom, recently warned that Bitcoin might dip to $80,000 before starting a rise again, suggesting that major indices like the S&P 500 and Nasdaq could slide by 10% to 20% first.
Interestingly, all these analysts had previously predicted Bitcoin might soar to at least $200,000 by year-end. Currently, Bitcoin is trading at around $91,500.
