The market always seeks to anticipate key movements, and the question of whether we've seen the worst of the current correction seems to have an optimistic answer from the institutional sector. Market cycles are a natural part of the evolution of any asset, but in the crypto ecosystem, identifying turning points requires analyzing multiple variables. According to recent reports from traditional financial institutions, the price of Bitcoin may have already bottomed out.
Geoff Kendrick, head of digital asset research at Standard Chartered, has identified three key signs suggesting the cryptocurrency market has bottomed out after the recent sell-off. First, he highlights the stabilization of outflows from US Bitcoin ETFs, particularly Grayscale (GBTC), which has eased the relentless selling pressure that dominated the market in recent weeks.
Secondly, the analyst highlights the post-halving behavior of Bitcoin miners. Following the reduction in the block reward, the capitulation of inefficient miners typically marks the market bottom, a structural adjustment process that appears to be nearing completion. Finally, Kendrick points to the notable increase in the options market, where a growing volume of year-end buy contracts is observed, demonstrating that institutional appetite for long-term risk remains intact.
As these variables align, institutional investors are beginning to regain confidence to re-enter the market. Although short-term volatility is always present, the structural metrics analyzed by Standard Chartered suggest that the foundation for Bitcoin's next bullish phase is already being established.
Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.
Source: Cointelegraph
