Alex Krüger, an economist and crypto trader, has a positive view on Bitcoin (BTC) and Ethereum (ETH) and predicts a strong finish for both cryptocurrencies by the end of the year. Krüger’s expectations of a bull market in early August following a 90% rate hike are intriguing.
Fed’s monetary policy shift
Krüger, who has amassed more than 153,900 followers on Twitter, believes the Federal Reserve is nearing the end of its historic series of rate hikes aimed at tackling inflation. With about 90% of the increases already implemented, the markets are poised for a profound transformation. The economist argues that the Fed’s past mistakes, coupled with a cooling economy and falling inflation, increase the likelihood of a policy reversal when new data emerges.
The Fed has delivered 20 x 25bps rate hikes in its fastest and most aggressive cycle in history.
Which means that at least 90% of Fed hikes are behind (if not all). That’s all that matters to me, and makes it easy to stay long. This has been my view all year.
My base case…
— Alex Kruger (@krugermacro) May 29, 2023
August: A Bullish Month for BTC?
His analysis suggests that markets could start moving up as early as August, well ahead of the expected December pivot. This early rise, also known as front-running, is driven by the expectation that the Fed will adjust its course. As the economy cools and inflation eases, Krüger foresees an upward trend, paving the way for a potentially bright end to the year.
Also Read: Analyst Predicts BTC Price Could Rise 200% Ahead Of Bitcoin Halving – Coinpedia Fintech News
Going long on BTC and ETH
He shows confidence in his predictions and further reveals that he has taken long positions on BTC and ETH. These positions reflect his belief that these leading cryptos will experience significant upside. No doubt his optimism stems from the market’s current challenges, including investors selling on rallies and the volume hindering Bitcoin from crossing the crucial $30,000 level. However, if Bitcoin breaks through this level and avoids a bearish reversal pattern, significant gains could be on the horizon.
While he remains optimistic overall, he warns of potential risks and market weaknesses. Should Bitcoin test the $26,000 mark again, Krüger advises caution as it could lead to further declines. Traders are advised to monitor the market closely and consider risk reduction if Bitcoin experiences a significant drop.
Final thoughts
Economist Alex Krüger’s positive view of Bitcoin and Ethereum has caught the attention of market participants. The economist expects a bull run due to the possible policy change of the Federal Reserve and the good market conditions.
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“Despite stubborn core inflation, betting on an upside market towards the end of the year is still a good bet.”
However, it is always a good idea to do your own research before investing.
