Bitcoin and Ethereum: What Should We Expect After the Correction?
Alex Krüger, an economist and crypto trader, has shared his views on the recent dip in the crypto markets.
Impact of U.S. SEC shutdown of Kraken’s staking services
Krüger suggests that the dip in the crypto markets is a reasonable response to the shutdown of Kraken’s staking services by the U.S. Securities and Exchange Commission (SEC).
However, he predicts a bounce back in the crypto markets in the next few days.
Next crypto rally
Krüger predicts that the next crypto bull run may start either with the release of the Consumer Price Index (CPI) or at the end of the month. He sees BTC and ETH as having more downside potential but believes that the market is healthy. Krüger suggests accumulating the next two weeks and predicts Ethereum and Bitcoin may “moon” after that.
Quick crypto market views. Not adding size just yet. Think next bull run starts either with CPI or end of month. BTC & ETH still have round levels below to run over. Not stressed about the market either. See this as a healthy pullback. Turn full bear on only if CPI beats by 0.2%. https://t.co/iFja3CMeZH
— Alex Krüger (@krugermacro) February 10, 2023
Consumer Price Index (CPI)
The Consumer Price Index (CPI) is scheduled to be released on February 14th and is a closely watched metric by traders. It tracks the rate of change in U.S. inflation over time. A below-consensus expectation print is usually seen as a bullish signal.
READ MORE: Bitcoin: 2023 Bull Run is Almost Certain – Santiment
SEC’s actions against U.S. crypto exchanges
Krüger predicts that the SEC will likely target Coinbase next for its staking services. However, he believes that the Agencies’ actions against U.S. crypto exchanges could have a positive effect on the industry later.
He suggests that the ban on U.S. exchanges from offering staking services will make Ethereum more decentralized and less under the control of U.S. regulators.
Positive Narrative Spin
Krüger predicts that a positive narrative spin will kick in a few weeks after the SEC’s actions, similar to when China banned Bitcoin. The narrative spinners turned it into a positive outcome. Something similar might occur soon as well, according to the trader.
Positive narrative spin for later: banning US exchanges/custodians from offering staking services pushes staking offchain or abroad => ETH is no longer centralized and under the grasp of US regulators.
Decentralized ETH is better ETH.
— Alex Krüger (@krugermacro) February 9, 2023
Andrey Kunev
Reporter at CoinsPress
Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.
