Bitcoin Correction May be Over, Says Standard Chartered

The cryptocurrency market has been experiencing a significant correction in recent times, with Bitcoin being one of the hardest hit. However, according to Geoffrey Kendrick, head of digital assets research at Standard Chartered, the recent decline may have reached its peak.

In an interview, Kendrick stated that the correction appears to have run its course, and the subsequent drawdowns resemble earlier declines in the cryptocurrency's price history. This statement suggests that the worst is behind us, and a new uptrend may be on the horizon.

Understanding the Correction

A correction in the cryptocurrency market refers to a decline in the value of Bitcoin or other digital assets after a significant increase in price. In this case, the correction began around mid-March 2023, with Bitcoin's price plummeting by over 20% in a matter of days.

Kendrick's Perspective

As the head of digital assets research at Standard Chartered, Kendrick has been closely monitoring the cryptocurrency market and providing insights to investors. According to him, the recent correction is reminiscent of earlier drawdowns, such as the one that occurred between 2018 and 2020.

In an interview, Kendrick noted:

"The decline we're seeing now is not unlike the correction we saw in 2018-2019. It's a typical corrective phase, where the market works through some of the excesses built up during the previous uptrend."

This statement suggests that the recent correction may be a normal part of the cryptocurrency market's cycle, and that it may eventually lead to a new uptrend.

Why This Correction May Be Different

However, some experts argue that this correction may be different from earlier ones. The current market is influenced by a range of factors, including global economic conditions, regulatory changes, and shifting investor sentiment.

One key difference between the current correction and previous ones is the level of institutional investment in the cryptocurrency market. According to Kendrick, there has been a significant increase in institutional investment in Bitcoin and other digital assets over the past few years.

"This influx of institutional capital has changed the dynamic of the market," said Kendrick. "It's brought more stability and legitimacy to the space, which has helped to reduce volatility."

What's Next for Bitcoin

So what does this mean for Bitcoin's future? According to Kendrick, the recent correction may be a sign that the worst is behind us, and a new uptrend is on the horizon.

"The correction we're seeing now is likely to be followed by a new uptrend," said Kendrick. "As long as the fundamentals remain strong, I expect Bitcoin to continue its upward trajectory."

However, this is not to say that there are no risks involved. Kendrick noted that the cryptocurrency market is inherently volatile, and that prices can fluctuate rapidly.

Conclusion

In conclusion, the recent correction in Bitcoin's price appears to have run its course, according to Standard Chartered's head of digital assets research Geoffrey Kendrick. While this news may be welcome to investors, it's essential to remember that the cryptocurrency market is inherently volatile, and that prices can fluctuate rapidly.

As we move forward, it will be crucial to monitor market trends and adjust our strategies accordingly. With its strong fundamentals and growing institutional investment, Bitcoin has a solid foundation for continued growth in the coming months.

Key Takeaways

• The recent correction in Bitcoin's price appears to have run its course.
• The correction is reminiscent of earlier drawdowns in the cryptocurrency market.
• Institutional investment in the cryptocurrency market has brought more stability and legitimacy to the space.
• A new uptrend may be on the horizon, driven by strong fundamentals and growing institutional investment.