Standard Chartered strategist cites ETF strength and forced liquidations as signals of near-term floor
Bitcoin declined 14% over seven days to $61,463, driven by Strategy’s sale of 32 Bitcoin, $3.45 billion in spot ETF outflows over 13 consecutive days, and $1.5 billion in futures liquidations. Geoff Kendrick, global head of digital assets research at Standard Chartered, told clients the bear market may be in its final stages.
“I think when we look back at the end of 2026 with BTC at $100k, we will say this was the buying zone we all wanted,” Kendrick said. His long-term price target for year-end 2026 is $100,000, compared to Bitcoin’s current trading range of $63,739 to $67,416.50.
Strategy’s sale of 32 Bitcoin between May 26 and May 31 generated approximately $2.5 million in proceeds at an average price of $77,135 per coin. The transaction marked the firm’s first net reduction of Bitcoin holdings in years and departed from co-founder Michael Saylor’s stated “never sell” posture. Strategy executed the sale to fund 11.5% annual variable dividends on its STRC preferred shares. Following an SEC filing disclosing the sale, STRC stock dropped 6% and Bitcoin fell below $72,000.
Bitcoin has declined 51% from its all-time high of $126,277, set in October 2025. The current sell-off mirrors conditions not seen since February 2026.
Kendrick identified three factors suggesting the market may be near a bottom. First, Strategy’s 2022 precedent offers historical context: the firm sold Bitcoin then purchased more than it sold two days later, with potential buyback of up to 100 times the 32 BTC currently sold. Second, spot ETF holdings remain structurally strong. Since U.S. spot Bitcoin ETFs launched in early 2024, they have accumulated $54.2 billion in cumulative net inflows. The 11 U.S.-listed spot ETF funds currently hold 674,000 BTC, down from a prior peak of 682,000 BTC. “This tells me that ETF holdings are more structurally strong than I had feared in February,” Kendrick said.
Third, the pool of leveraged longs available for liquidation has shrunk compared to prior drawdowns. The current sell-off liquidated $1.5 billion in Bitcoin futures bets.
Spot Bitcoin ETFs have experienced their longest streak of consecutive net outflows since launching in early 2024. Over 13 days, the funds recorded $3.45 billion in net withdrawals. The week ending May 29 saw $1.42 billion in net outflows, marking the third-largest weekly withdrawal on record. May 2026 recorded $2.30 billion in cumulative spot ETF outflows, the worst month of the year.
Micah Zimmerman reported on the market dynamics for Bitcoin Magazine on June 4, 2026.
