Economist Alex Krüger is predicting a Bitcoin supercycle, and he’s got some compelling reasons. He believes the current bull run is unlike anything we’ve seen before.
A New Era for Bitcoin?
Krüger points to the significant shift in the regulatory landscape as a key driver. With the election of Donald Trump and his pro-crypto cabinet appointments, the US government’s stance on Bitcoin is changing dramatically. He argues this is a fundamental shift, comparing it to the transformation of gold in the 1970s after Nixon ended the Gold Standard.
“This isn’t like past Bitcoin cycles,” Krüger emphasizes. “The industry went from being a pariah to being embraced by the state – a complete 180.” He believes this unprecedented change makes a supercycle highly likely.
When Will the Top Be?
While Krüger anticipates a major price peak around March, he doesn’t see this as the end of the bull run. He clarifies that factors like the speed of price increases, funding rates, and the overall economy will play a role. He stresses that even a significant price correction wouldn’t necessarily signal a bear market.
“Bitcoin bull runs usually last for months,” he notes, adding that it’s too early to call a top, especially considering the recent positive developments. He dismisses the idea of a single “top,” suggesting instead that significant pullbacks (around 40%) are more likely within a prolonged supercycle. He even claims the traditional four-year Bitcoin cycle is now obsolete.
The Bottom Line
Krüger’s prediction is bold, but his reasoning is based on the significant changes in the regulatory environment and the unprecedented shift in the overall perception of Bitcoin. Whether or not he’s right remains to be seen, but his analysis is certainly food for thought for Bitcoin investors. Currently, Bitcoin is trading around $96,555.
