The cryptocurrency market has reached its final bottom for the monetary cycle, Standard Chartered analyst Geoffrey Kendrick said in a note on Friday.
The cycle low is now set at $59,000 for bitcoin, a 53% drop from its Oct. 6 all-time high of $126,000, according to Kendrick.
“Winter is over. Welcome back to crypto spring,” he said.
Data from CoinDesk shows that Bitcoin touched as low as $59,375 on June 5 afternoon, around 18:00 UTC. At the time of writing, bitcoin was just around $64,000.
Kendrick, who has a price target of $4,000 on ether and $100,000 on bitcoin by the end of this year, on Friday identified two main drivers behind this market shift.
First, recent weeks have seen some of the heaviest spot selling of bitcoin ETFs since their inception. Total refunds exceeded $5.72 billion since the second week of May. He also noted that ETF holders have anecdotally been liquidating their positions to free up cash to participate in the SpaceX initial public offering (IPO).
Shares of Elon Musk’s SpaceX began trading on Nasdaq at around $150 on Friday and are now about 26% above their IPO price.
