Economist Alex Krüger Expects Strong Finish for Bitcoin and Ethereum in 2023

As the cryptocurrency market continues to navigate through its ups and downs, renowned economist and crypto trader Alex Krüger has recently expressed a bullish outlook on two of the market’s leading digital assets, Bitcoin (BTC) and Ethereum (ETH).

Krüger, known for his insightful analysis and predictions, has shared his thoughts on social media, highlighting key factors that could contribute to a strong finish for both cryptocurrencies this year.

In a tweet, Krüger pointed out the Federal Reserve’s aggressive interest rate hiking cycle, stating, “The Fed has delivered 20 x 25bps rate hikes in its fastest and most aggressive hiking cycle in history.” This remark is significant, as Krüger believes that at least 90% of the Fed’s rate hikes are already behind us, if not all. He views this as a crucial factor that makes it easy for him to maintain a long position on Bitcoin and Ethereum.

Krüger’s bullish sentiment is rooted in his analysis of the cooling economy and declining inflation. He argues that due to past errors, the Fed is forced to continue hiking rates, potentially overshooting its target. However, as economic data begins to weaken, Krüger believes there is a high probability that the Fed will pivot and change its monetary policy. This pivot, which he anticipates to occur in December, could signal the beginning of a bull market in early August, presenting a favorable opportunity for investors.

While Bitcoin has faced challenges in gaining significant upward momentum, with many investors adopting a strategy of selling during price increases and periods of volatility, Krüger remains optimistic. He suggests that if Bitcoin manages to break above the 30K mark, technical analysis indicates a major failed Head and Shoulders (H&S) pattern, which could potentially act as a bear trap and lead to a strong upward surge.

Krüger discloses that he is currently invested in Bitcoin and Ethereum through spot positions and calls, with the intention of becoming more aggressive in the later part of the year. He also provides insights on potential downside risks, highlighting that if Bitcoin retraces to the 26K level, it could trigger a stop run and result in a considerable downward move. This, according to Krüger’s chart analysis, might serve as an opportune moment for risk reduction for those who hold substantial positions.

In conclusion, Alex Krüger’s bullish outlook on Bitcoin and Ethereum stems from his evaluation of economic conditions and the Federal Reserve’s monetary policy. As the economy cools and inflation falls, Krüger believes the Fed will be forced to pivot, potentially igniting a bull market.

Although the cryptocurrency market has faced challenges, Krüger maintains a positive stance, particularly if Bitcoin manages to break above the 30K mark. Investors should monitor the evolving market conditions and evaluate their risk profiles accordingly, taking into consideration the insights provided by seasoned analysts like Alex Krüger.

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