Economist Alex Krüger, a prominent voice in the crypto world, believes Bitcoin (BTC) might have hit its lowest point after a significant price drop. He suggests that if this is indeed the bottom, BTC could quickly climb back to the $89,000-$92,000 range.
Krüger’s Prediction: A Potential Bear Trap
Krüger’s analysis points to a potential “bear trap” scenario. A bear trap occurs when a price plummets, convincing investors to sell, only to reverse sharply upwards. If Bitcoin successfully reclaims the $92,000 level as support, this bear trap would be confirmed, according to Krüger. He anticipates a good year for active traders, regardless.
Factors Behind Bitcoin’s Dip
Krüger highlights several factors that contributed to Bitcoin’s recent correction:
- Crypto-Specific Factors: He points to MicroStrategy’s large Bitcoin purchase at a high price, the collapse of Solana (SOL), and the impact of the Libra project’s failure, all contributing to market uncertainty. The breakdown of Bitcoin’s long-term price range also played a role.
- Macroeconomic Factors: Krüger cites more aggressive-than-expected tariffs, higher-than-anticipated inflation, and growth concerns (partly linked to Trump-era policies) as macroeconomic influences. Interestingly, he notes that the US economy is actually performing well despite these market anxieties.
The Outlook
Despite the recent volatility, Krüger doesn’t believe this marks the start of a prolonged bear market. At the time of writing, Bitcoin was trading around $85,312, showing a 5% increase in the past 24 hours. His prediction suggests a potential short-term rally followed by a retest of the $80,000 range before a potential sustained upward trend.
Disclaimer:
This information is for general knowledge and does not constitute financial advice. Always conduct thorough research before making any investment decisions./p>
