Economic Insights on Bitcoin

A closely followed economist thinks that Bitcoin (BTC) may be repeating a similar pattern observed last year and still has room for upside growth.

Alex Krüger, who has 206,800 followers on X, mentions that Bitcoin’s recent sharp correction resembles its drop to range lows in April 2024 before starting a series of rallies. However, he cautions that uncertainty surrounding US President Donald Trump’s tariff policies poses a significant risk to the crypto markets.

> “The dominant mood across crypto market participants is ‘it is over.’ For good reason. The Bitcoin dip is large, yet not extraordinary. But across alts, the destruction is real. That said, I see this BTC chart as a replica of early 2024. Range lows are meant to be taken out (check the early 2024 range). Do need the Donald not to nuke us. The trigger for the last move down was precisely tariffs news (on Canada and Mexico).”

Krüger also indicates that Bitcoin may still reach lower price targets before rallying.

> “BTC is bottom of the range, akin to April 30th, 2024 in my opinion. Maybe we go lower, maybe we bounce. Don’t know, but it’s a good spot regardless.”

He points out that significant corrections in Bitcoin occur multiple times a year, which can present buying opportunities.

> “One can make a living just from getting good at buying liquidations. We get two-four such liquidations a year.”

The economist previously suggested that investors should take a long-term view since he believes the crypto market is in a supercycle, which could involve painful Bitcoin pullbacks.

> “BTC is stuck in a range, which I think eventually resolves higher. The supercycle theory is intact. Even though it applies to Bitcoin and crypto as a whole (market cap ex BTC and stables is considerably higher), most old alts don’t benefit from it on a sustained basis. Should not expect an insane wave of liquidity driving all cr*p higher for an extended period. Be selective.”

As of writing, Bitcoin is trading at $84,608, reflecting a 4.8% decline in the last 24 hours.