A widely followed economist believes several catalysts on the horizon could give Bitcoin (BTC) a massive shot in the arm.
Economist Alex Krüger tells his 176,300 followers on the social media platform X that Bitcoin broke below its $60,000 psychological support as fears surrounding sell pressure from the German government and Mt. Gox repayments grip the crypto market.
Krüger says that while the sell pressure from Mt. Gox creditors and the German government will keep crypto jittery in the next few months, he names five catalysts that he believes will trigger renewed rallies toward the end of the year.
“These selling flows will continue to exert selling pressure and keep crypto natives on edge in the coming months. However, these are finite, and my outlook into year end is very positive. Mainly due to:
a) soft landing
b) the beginning of the Fed’s cutting cycle
c) crypto-macro correlation resurfacing as Germany/Gox move along
d) Trump’s victory bringing an improved regulatory outlook for crypto
e) beginning of FTX creditors inflows.”
According to an image shared by Krüger, FTX will pay its creditors roughly $14 billion to $16 billion in cash, which might give Bitcoin and crypto a much-needed boost if the recipients choose to reinvest the funds into the market.
Says Krüger,
“FTX creditors should be ecstatic. They will start to get their money back in Q4, and Gox creditors are giving them a great entry.”
Looking at Bitcoin’s chart, Krüger thinks that BTC will consolidate at around the $50,000 level for some time.
“TA-wise, likely time for BTC to trade in the $50,000s for a while, and fill that area up. On the downside, looking at $52,000, and $48,000 – $49,000 if we see extreme Gox-driven selling pressure (low $40,000s makes little sense to me in a no-hard-landing scenario).
On the upside, we have the 200-day moving average (DMA) at $58,500. A bounce back to the 200DMA seems most likely. Aggressive sellers will re-engage there.”
Source: Alex Krüger/X
At time of writing, Bitcoin is trading for $55,282, down over 4% on the day.
Generated Image: DALLE3
