Crypto economist and analyst Alex Krüger expects Bitcoin (BTC), the largest cryptocurrency by market value, to increase in value and potentially experience strong rallies in the near future. Here is the analyst’s rally prediction for BTC.
Expectation of a Strong Rally in Bitcoin
Guest of a new “Wolf of All Streets” podcast, Alex Krüger, explained the importance of BlackRock’s spot Bitcoin ETF application to the U.S. Securities and Exchange Commission (SEC). He also noted technically that Bitcoin had a significant liquidity area between $31,000 and $37,000 during the collapse of the Terra ecosystem last year and suggested that a strong rally could be sparked if it convincingly enters this range:
We have very strong news that BlackRock’s spot Bitcoin ETF is likely to be approved. Although the approval is contentious, the real issue is that we’ve only heard about 20% of this news, and even if the chance of approval is not around 75%, it’s around 50%. So, on the one hand, the market is not properly positioned for this. Another point is that the news is huge and hasn’t been correctly priced yet.
Technically, we are right on the boundary of the resistance zone between $31,000 and $37,000. $37,000 is the lunar level of May 18, 2023. It’s the level we saw when some of us had heart attacks, and some went out to dance for joy. We are on the verge of a significant breakout, and once it breaks, it will keep running.
“Regulatory Pressures Led to Divergence in BTC”
Krüger also indicated that Bitcoin has temporarily diverged from its other risky assets due to regulatory pressures, but he expects BTC and the crypto market to start moving more in sync with other assets such as stocks:
On the correlation side, I want to say that regulators in the U.S. have become very aggressive since early April this year. Many large market makers started to step out of the market. This led to correlations dropping to 2020 levels, before Bitcoin became a macro asset. This is a temporary situation.
