beehiiv-import

⚡Standard Chartered Goes Crypto🏦

Croxroad

23 Jun 2024 — 3 min read

☕️ GM Dear Plebs!

Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

🏧 Standard Chartered

Standard Chartered is set to enter the cryptocurrency trading arena with the imminent launch of a spot trading platform for bitcoin and ethereum, according to sources cited by Bloomberg's Emily Nicolle on June 21. The British multinational banking giant is preparing to roll out this initiative under its foreign exchange (FX) division, catering specifically to institutional clients. In response to growing demand, Standard Chartered has been collaborating closely with regulators to facilitate seamless access to digital assets, including custody services and tokenization, aligning with its broader strategy to support clients across the expanding digital asset ecosystem.

The move underscores Standard Chartered's proactive engagement in cryptocurrency markets, fueled by bullish projections from its own market strategists. Analysts at the bank have forecasted that bitcoin (BTC) could potentially surge to $100,000 by year-end, with the possibility of reaching $150,000 should specific geopolitical outcomes materialise. Notably, the bank's analysts accurately predicted the approval of spot ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC), highlighting their informed insights into regulatory developments and market trends within the cryptocurrency landscape.

🔽 BTC Downtrend Continues

Bitcoin (BTC) continues its downward trajectory, trading at $64,109, down 13.8% from its peak of $73,835 on March 14, marking over two weeks of decline. Analysts suggest that BTC's recovery hinges on bolstering its hashrate and shedding "weak hands" in the market.

Independent analyst Willy Woo emphasised that Bitcoin's price recovery depends on the resolution of miner capitulation and subsequent hashrate recovery. He noted a prolonged period of miner capitulation post-halving, attributing it to outdated hardware and high operational costs forcing miners to sell their BTC holdings.

The concept of miner capitulation posits that when Bitcoin's price drops below profitability thresholds, miners with inefficient setups are compelled to sell or upgrade their equipment. Woo illustrated this with historical data, showing that current recovery timelines for hashrates are lengthier compared to previous cycles, suggesting ongoing market adjustments.

Fellow analyst Mr. Anderson echoed similar sentiments, explaining that market shakeouts, triggering panic selling among less committed traders, could stabilise prices once weaker positions are flushed out. This dynamic, common in volatile markets, aims to pave the way for a rebound as stronger hands accumulate BTC at discounted levels.

🫧 Bubble

A bubble occurs when optimism about future bitcoin price increases leads to speculative buying, driving prices higher in a self-reinforcing cycle. This continues until the bubble "pops," causing a sharp price drop, known as a correction.