- This week, crypto markets touched a low of $2.06 trillion but quickly recovered to $2.13 trillion.
- Crypto markets might have formed a local bottom, claims Standard Chartered, reiterating its $100k target for 2026.
- Strategy bought another 1550 BTC at $101 million, shedding claims of potential sell off.
- However, factors like liquidity and the end of geopolitical tensions remain uncertain.
Markets Form Local Bottom
Crypto markets have reportedly formed a local bottom, claims investment banking institution Standard Chartered. The markets showed a sharp upturn after touching a low of $2.06 trillion on Saturday, June 6. There was a quick recovery to $2.13 trillion by the next day, suggesting a bottom despite a reignited conflict with Iran. This recovery has shown signs of a market bottom, according to multiple estimates.
Standard Chartered Predicts $100k BTC by Year End, Citi Says $189k
Standard Chartered remains optimistic about a market recovery due to multiple factors such as renewed ETF inflows, greater Bitcoin adoption, and renewed treasury-led buying. The bank estimates a $100k price for Bitcoin by 2026.
A greater prediction was made by Citibank earlier this week, which claims a major target of $189k, higher than the last ATH of $126k for Bitcoin. Even in the bear case, the institution thinks Bitcoin won’t slide below $78k, which is about 30% above the current price ($61k at press time).
Strategy Buys 1,550 BTC
After coming under serious criticism for advocating a no-sell policy while selling 32 BTC last week, the Bitcoin Treasury Strategy has bought 1,550 Bitcoins worth $101 million. The purchase comes after Bitcoin dropped to lows of $59k last week. The company now holds over 845,256 BTC, bringing its acquisition cost down to $75k per BTC.
Critical Factors Remain Uncertain
Despite signs of recovery, some critical factors necessary for a market bottom remain elusive.
The conflict in the Middle East shows no signs of ending, with renewed conflicts this week.
Further, confidence in the retail market remains low, with the Bitcoin Fear and Greed Index still at Extreme Fear (9).
Another critical factor that remains uncertain is the liquidity crunch in the markets. All eyes are fixed on the US Federal Reserve Meeting of June 16-17, coming next week. If the meeting results in a rate cut, whatever the number, it will greatly boost market confidence. Otherwise, we might see Bitcoin slide towards the $50k level.
Disclaimer: BFM Times acts as a source of information for knowledge purposes and does not claim to be a financial advisor. Kindly consult your financial advisor before investing.
