Crypto Analyst Predicts Volatile Move to the Upside as Markets De-Correlate
Economist and cryptocurrency analyst Alex Krüger shared his beliefs that the bottom has likely been reached.
He also states that a serious move to the upside could be taking shape in the cryptocurrency market.
In a recent live stream with Scott Melker, Krüger expressed his bullish outlook on crypto markets and explained his reasoning behind his expectations.
Equities likely to stay range-bound
The analyst believes that barring a black swan event, the S&P 500 will not collapse down to $3,000. Instead, he predicts that equities will likely trade within a range, giving Bitcoin (BTC) and other cryptocurrencies the chance to de-correlate from the traditional markets and move to the upside.
Krüger notes that comparing equities with interest rates and real rates on a historical basis, they are pretty high.
This presents a headwind for equities, which could remain range-bound and offer almost no upside. However, he believes that Bitcoin and crypto have idiosyncratic variables that can make them de-correlate entirely from traditional markets for brief periods, going either up or down.
Krüger’s bullish outlook
The economist expects that crypto markets will enter a bullish phase and sees the potential for a volatile move to the upside.
He is playing the long side and believes that the bottom is in, although he warns that he could be wrong.
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Inflation is a potential concern
Krüger warns that if inflation doesn’t decline more, the Federal Reserve may raise interest rates higher than expected, which could send crypto to new lows. He notes that some bears believe inflation could end up being sticky because payrolls and the US employment market are still hot. If inflation doesn’t come down as expected, the Fed could push up to 6.5%, which would make sense to trade new lows.
In summary, Krüger is optimistic about the cryptocurrency market and believes that crypto markets will enter a bullish phase. He sees the potential for Bitcoin and other cryptocurrencies to de-correlate from traditional markets and move to the upside but warns that inflation and interest rates could pose potential risks to his outlook.
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.
