Banking giant declares Bitcoin ‘winter is over’

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Standard Chartered has signaled a bullish outlook for the cryptocurrency market, declaring that the recent downturn has likely reached its bottom and that Bitcoin’s (BTC) latest correction marked the end of the current crypto winter.

The call came from Geoff Kendrick, the bank’s Global Head of Digital Asset Research, who said Bitcoin’s decline to nearly $59,000 represented the low point of the market cycle following a 53% pullback from its record high of $126,000 reached in October.

The bullish assessment arrives as Bitcoin has recovered above $63,000 after a volatile period that saw the world’s largest cryptocurrency briefly fall below $60,000. By press time, BTC was trading at $63,882, having gained by about 0.5% in the past 24 hours. 

Bitcoin seven-day price chart. Source: Finbold

The rebound has been supported by improving investor sentiment and easing macroeconomic pressures that had weighed on digital assets in recent months.

Despite the recent market turbulence, Standard Chartered has maintained its Bitcoin price prediction of $100,000 and continues to expect further upside for the cryptocurrency market. The bank also remains constructive on Ethereum, with a year-end target of $4,000.

“I think we have now seen the low in crypto asset prices.<…> Winter is over,” the analyst said. 

Drivers of Bitcoin correction 

According to Kendrick, the recent selloff was driven by a combination of factors, including heavy outflows from spot Bitcoin exchange-traded funds (ETFs), investor repositioning ahead of SpaceX’s record-breaking initial public offering, and rising oil prices that pushed U.S. Treasury yields higher.

Spot Bitcoin ETFs have recorded approximately $5 billion in net outflows since mid-May, creating significant selling pressure. 

Kendrick suggested that some investors may have liquidated crypto holdings to free up capital for participation in SpaceX’s historic public debut.

The broader macroeconomic environment also contributed to the correction. Escalating tensions in the Middle East drove oil prices higher, increasing concerns about inflation and making government bonds more attractive relative to risk assets such as cryptocurrencies.

However, those headwinds have started to ease. Market sentiment improved after signs of progress toward a potential U.S.-Iran agreement raised hopes that energy supply disruptions could be reduced, helping to lower oil prices and improve appetite for risk assets.

Bitcoin climbed above $63,000 as sentiment improved, putting the cryptocurrency on track for a weekly gain.

Standard Chartered said further confirmation of a market bottom would come from renewed spot Bitcoin ETF inflows, lower oil prices, and additional Bitcoin purchases by Strategy. The bank believes these factors could support the next leg of the crypto market recovery.

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