Bitcoin buyers should ‘stay patient,’ says Standard Chartered analyst – DL News #CriptoNews

Bitcoin exchange-traded funds hemorrhaging almost $1 billion Tuesday, but investors betting on a rebound should stay patient, according to Geoff Kendrick, head of crypto research at UK bank Standard Chartered.

“While that level of outflow was encouraging I do not think the sell-off is over yet,” Kendrick wrote in a Wednesday morning note.

“These types of losses rarely end well and I still think the big capitulation is yet to come.”

The note was prescient: Bitcoin fell around 7% to $82,500 Wednesday — its lowest level since November 11 — before rebounding to $84,000.

Fueled by the November 5 election of US President Donald Trump, Bitcoin hit an all-time high of $108,700 in January.

But it has fallen more than 22% since then amid a decline in equities markets, a record-setting crypto hack, and controversy surrounding memecoins.

Kendrick had previously said $1 billion in outflows from Bitcoin ETFs could signal the market’s bottom.

Bitcoin nearly hit that on Tuesday, with $938 million in outflows. That selling pressure sent Bitcoin below $90,000 for the first time this year.

“A clean break below that could open up a further 10% retracement in all digital assets,” Kendrick warned in a January memo.

Most Bitcoin ETF buyers are now in the red, with an overall net loss of about $1.3 billion, he estimated.

Bitcoin “is now caught up in the Solana memecoin driven selloff and now the broader risk-off nature of markets,” wrote Kendrick.

A recent report from JPMorgan speculated that institutional investors were taking profits or cutting their losses in the absence of a new narrative to spur market growth.

Andrew Flanagan is a Markets Correspondent with DL News. Have a tip? Reach out to [email protected].