‘Crypto spring’ is here, says one analyst after bitcoin's key signals turn bullish
Key takeaways
- The latest call marks a shift in sentiment after several months in which crypto markets struggled with rising geopolitical tensions, concerns about inflation and persistent outflows from U.S.
- Last Friday, Kendrick told clients he believed bitcoin's decline to roughly $59,000 represented the cycle low.
- Strategy, the largest corporate holder of bitcoin, disclosed that it purchased another 1,587 BTC last week.
The latest call marks a shift in sentiment after several months in which crypto markets struggled with rising geopolitical tensions, concerns about inflation and persistent outflows from U.S. spot bitcoin exchange-traded funds (ETFs.)
Last Friday, Kendrick told clients he believed bitcoin's decline to roughly $59,000 represented the cycle low. At the time, however, he outlined three developments he wanted to see before gaining more confidence in that view: renewed bitcoin purchases by Strategy (MSTR), a return to positive ETF inflows and continued weakness in oil prices.
Strategy, the largest corporate holder of bitcoin, disclosed that it purchased another 1,587 BTC last week. U.S. spot bitcoin ETFs posted net inflows of $86 million on Friday after a stretch of notable redemptions. Oil prices also continued to move lower, reducing concerns that higher energy costs could push inflation and bond yields upward.