Bitcoin hits $59,000 bottom as ETF inflows recover

Geoffrey Kendrick, head of digital asset research at Standard Chartered, has stated that Bitcoin likely reached the bottom of its current market cycle at around $59,000. Kendrick believes a rebound in investor inflows, renewed corporate buying, and easing macroeconomic pressures could pave the way for a stronger recovery in the cryptocurrency market.

Recent boosts to market optimism

Kendrick’s assessment comes after months of dampened sentiment, driven by renewed geopolitical tensions, inflation concerns, and persistent outflows from spot Bitcoin ETF products listed in the United States. In a note sent to clients last Friday, Kendrick indicated that Bitcoin’s dip to about $59,000 may have marked the low point of this cycle.

He identified three key conditions for greater confidence in this view: a return to Bitcoin purchases by the firm Strategy, renewed net inflows into US-listed spot Bitcoin ETFs, and continued weakness in oil prices. Strategy is noted as one of the biggest institutional holders of Bitcoin among publicly traded companies.

All three developments materialized in quick succession. Last week, Strategy announced the purchase of an additional 1,587 BTC. On Friday, US spot Bitcoin ETFs registered $86 million in net inflows. At the same time, oil prices continued to decline—easing concerns about a fresh rise in energy-driven inflation and bond yields.

ETF flows and price thresholds under watch

Since their debut in January 2024, spot Bitcoin ETFs in the US have become major demand drivers for the asset. Kendrick had highlighted that the recent sell-off was among the most severe since these products launched. He also noted that the theory of investors cashing out to participate in SpaceX’s anticipated IPO is based on only limited evidence.

Broader signs of recovery are emerging across the cryptocurrency market. Easing of certain regulatory barriers to US crypto derivatives last month and increasing institutional involvement have bolstered sentiment. Further, the launch of perpetual futures for US clients on the Kraken exchange marked the latest move in this space.

Meanwhile, Bitcoin continues to attract interest from publicly traded companies looking to add the asset to their balance sheets. While some market observers have pointed out lower highs in the latest rally attempts, Kendrick maintains that a decisive move above the $83,000 level, last seen in early May, is required to put these concerns to rest.

Parallel view from Coinbase leadership

At the time of writing, Bitcoin was trading at $66,300, registering a 1 percent gain over the last 24 hours. According to Kendrick, a clear breakout above $83,000 would significantly strengthen the case for a renewed bull trend in the market.

Brian Armstrong, CEO of Coinbase, echoed similar sentiments on Monday. Armstrong expressed the belief that Bitcoin may have found its bottom around $60,000 and maintained his optimism for the asset’s outlook. As the largest US cryptocurrency exchange, Coinbase is closely watched by both institutional and retail investors as a key market benchmark.

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