Cryptocurrency markets have started to recover, and the price of Bitcoin, at $29,400 after a long pause, has sparked optimism among investors. Renowned economist and crypto trader Alex Krüger believes that this trend will continue and views the current situation as a significant opportunity.
Notable Economist’s Bitcoin Comment
Krüger interprets BlackRock’s Bitcoin (BTC) exchange-traded fund (ETF) application as representing one of the “easiest long entries of the year” for BTC. According to him, the slower than expected price rise following this news actually presents investors with an easy profit opportunity. Last Thursday, BlackRock, the world’s largest asset manager, submitted an application for a spot Bitcoin ETF to the U.S. Securities and Exchange Commission (SEC).
Krüger finds it “incredible” that so many investors are overlooking the ETF news. He expects the ETF to be approved by 2024, and foresees this event transforming Bitcoin’s status in the market.
Despite applications from Grayscale, VanEck, and Cathie Wood, no Bitcoin spot ETF applications have been approved to date. The SEC greenlit the launch of two Bitcoin futures ETFs in October 2021.
Crypto Investors Might Be Shocked
Krüger notes that the price of gold rapidly increased after the approval of the first American ETF but warns that this fund was not the primary reason for the surge. “The primary drivers of gold during that time were monetary policy and inflation expectations; the ETF merely made the flows possible,” he clarified.
At the time of writing, Bitcoin is trading at $23,318, gaining 10% daily. The appetite for the king cryptocurrency is fueled by ETF applications, and the belief in their potential approval is rapidly growing.
Bitcoin is reaching the overbought zone in the short-term timeframe charts and may experience a minor pullback to gather demand. Many investors who distanced themselves during the bear markets have not yet returned. They could be in for a shock if the steady rise continues.
