Economist Alex Krüger Flips Bullish on Bitcoin and Ethereum, Says Markets Gearing Up for Bull Run

Econ­o­mist and cryp­to trad­er Alex Krüger is turn­ing bull­ish on Bit­coin (BTC) and Ethereum (ETH), pre­dict­ing they will fin­ish the year strong.

Krüger tells his 153,900 Twit­ter fol­low­ers that the Fed­er­al Reserve is like­ly near the end of rais­ing inter­est rates to tame infla­tion, and will like­ly piv­ot in December.

He believes the mar­kets will antic­i­pate the Fed’s piv­ot and start ral­ly­ing as ear­ly as August.

“The Fed has deliv­ered 20 x 25bps (basis points) rate hikes in its fastest and most aggres­sive hik­ing cycle in his­to­ry. Which means at least 90% of the Fed hikes are behind (if not all). That to me is all that mat­ters, and makes it easy to stay long. This has been my view all year. 

My base case is a Decem­ber piv­ot and a bull mar­ket gear­ing up in ear­ly August to front run this. Why? The econ­o­my is cool­ing and infla­tion is falling. The Fed is forced to over­shoot (hik­ing) due to its past errors … which increas­es odds of it piv­ot­ing when data rolls over.” 

Krüger says even if infla­tion proves more sticky and the Fed does not piv­ot in Decem­ber, he still believes the mar­kets will end 2023 high­er than they are trad­ing at today.

“If core infla­tion remains sticky there will be no piv­ot in 2023, but with the Fed at least 90% done regard­less (and the AI rev­o­lu­tion) upside into year end still is a good bet.” 

The cryp­to trad­er also says he is tak­ing long posi­tions on both BTC and ETH, bet­ting on them hav­ing big moves to the upside.

Accord­ing to Krüger, Bit­coin is hav­ing a chal­leng­ing time cross­ing the key $30,000 lev­el because investors are sell­ing on ral­lies and volume.

Krüger says that if Bit­coin can cross the $30,000 lev­el and fails to form a head and shoul­ders pat­tern, which is used in tech­ni­cal analy­sis to deter­mine a bull­ish-to-bear­ish trend rever­sal, it will like­ly soar.

“Mean­while, on BTC land it’s been hard to push high­er as every­one has been embold­ened to sell rips and vol. But if by chance the mar­ket man­ages to get above $30,000, then TA (tech­ni­cal analy­sis) says that’s a major failed [head and shoul­ders] bear trap [and] high odds of a strong rip. 

I am decent­ly long BTC and ETH via spot and calls, and ready to get more aggres­sive lat­er in the year.” 

How­ev­er, the cryp­to trad­er warns that if Bit­coin retests $26,000, the dig­i­tal asset may show fur­ther weakness.

“On the down­side, if BTC push­es back down to $26,000, chart to me says should see a decent flush on a stops run (good spot to de-risk if very long).” 

Bit­coin is trad­ing for $27,702 at time of writ­ing, while Ethereum is worth $1,904.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Gen­er­at­ed Image: Midjourney