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]. creator solana token
