Economist Alex Krüger believes Bitcoin (BTC) is mirroring a pattern from earlier this year and could see further price increases.
Bitcoin’s Recent Dip: A Repeat Performance?
Krüger, who boasts a large following on X (formerly Twitter), sees similarities between Bitcoin’s recent drop and its performance in April 2024. He notes that while the current dip is significant, it’s not unprecedented. However, he points out that other cryptocurrencies (altcoins) have been hit harder. He believes that Bitcoin could potentially break out of its current trading range, similar to what happened earlier in the year.
Trump’s Tariffs: A Looming Threat
Krüger highlights a major caveat: uncertainty surrounding President Trump’s trade policies poses a significant risk to the crypto market. He recalls that tariff news previously triggered a Bitcoin price drop.
Buying the Dip?
Krüger suggests that Bitcoin might dip further before rallying. He views the current price as potentially similar to a low point in April 2024. While he can’t predict with certainty whether a bounce is imminent, he sees the current situation as potentially advantageous for investors. He adds that significant Bitcoin corrections happen several times a year, often creating buying opportunities for savvy investors. He believes that consistently buying during these dips can be a profitable strategy.
The Bigger Picture: A Bitcoin Supercycle?
Krüger maintains his long-term bullish outlook on Bitcoin, suggesting that the cryptocurrency is in a “supercycle.” This means that while pullbacks are expected, the overall trend is upward. However, he cautions that this supercycle might not benefit all altcoins equally, advising investors to be selective in their investments.
Current Bitcoin Price and Disclaimer
At the time of writing, Bitcoin is trading around $84,608, down slightly. It’s important to remember that this is not financial advice, and any investment decisions should be made after thorough research and consideration of your own risk tolerance.
