As bitcoin shows a downward trend, Standard Chartered instead raised a case that it has bottomed.

CoinPost, a blockchain media outlet, reported on June 5 that Standard Chartered's head of digital assets research Geoffrey Kendrick (제프리 켄드릭) argued spot bitcoin exchange-traded fund holdings are supporting the downside in bitcoin prices and that the possibility of large-scale repurchasing by Strategy could be a clue that a bottom is forming.

Kendrick assessed this week's decline as "a week when the shock to the crypto market was big". Bitcoin traded around $63,700, down about 2.8 percent on the day and about 14 percent on the week. Ethereum fell about 4 percent on the day to around $1,775.

He viewed the current period as a buying zone from a medium- to long-term perspective. He expected that looking back after bitcoin hits $100,000 and ethereum $4,000 by the end of 2026, the present would look like the buying opportunity everyone wanted.

One direct trigger the market focused on was Strategy's bitcoin sale. Kendrick noted that the timing of Strategy's sale of 32 bitcoin this week matched exactly with what crypto sceptics had argued. He added that the sale could be a precursor to future repurchasing rather than a long-term shift in direction.

He cited a case from December 2022. At that time, Strategy sold 704 bitcoin for tax treatment and bought 810 bitcoin back just 2 days later. Kendrick said a larger-scale repurchase could also emerge this time. He put the expected size at 320 bitcoin or 3,200 bitcoin, an amount equal to 10 to 100 times the 32 bitcoin sold.

Kendrick said market interpretation could also change if Strategy's repurchasing is confirmed. He said that if Strategy's repurchase is confirmed, it could be a tentative signal showing a bottom has formed.

On supply and demand, relatively stable spot ETF holdings were also presented as evidence. Spot bitcoin ETF holdings are moving sideways at about 674,000 bitcoin, and Kendrick judged this flow shows structural downside rigidity in bitcoin prices.

Short-term negative factors remain. The market focused on Mt. Gox moving about 10,306 bitcoin to a new wallet and then transferring an additional 116.3 bitcoin toward Bitstamp. The move heightened vigilance over creditor repayments or potential selling, and was cited as a factor that stirred spot selling pressure.

In the end, this down leg is summed up as a flow in which the steadiness of ETF holdings, Strategy's temporary sale and expectations of repurchasing, and selling caution stemming from Mt. Gox transfers acted at the same time. Going forward, the market is expected to view as key variables how quickly Strategy actually buys bitcoin again and whether Mt. Gox-related amounts come to market further.