A well-regarded economist believes that the current bull market for Bitcoin (BTC) and cryptocurrencies still has room to grow. Alex Krüger, who has a large following on the social media platform X, states that crypto investors are disappointed because the current market cycle appears to be different from previous ones in terms of duration and magnitude of gains. However, Krüger argues that investors should take a broader perspective, as he believes that crypto is in the midst of a supercycle.
Krüger explains that BTC is currently trading within a range, but he believes that it will eventually break out to higher levels. He maintains that the concept of a supercycle still holds true, although it may not benefit all altcoins on a sustained basis. He cautions against expecting a significant surge in liquidity that would drive all cryptocurrencies higher for an extended period of time, and advises investors to be selective in their choices.
According to Krüger, a supercycle does not imply that Bitcoin will continue to rise without experiencing significant pullbacks. He states that his definition of a supercycle is playing out, with BTC trading in line with equities but with smaller and shorter drawdowns, such as a 40% decline rather than the 80%-90% drops seen in the past.
When it comes to Solana (SOL), Krüger refers to it as the “fastest horse” in the market. However, he warns that the altcoin is expected to face a large amount of newly unlocked supply entering the market in the next two months.
Regarding Ethereum (ETH), Krüger believes that the leading layer-1 protocol needs a boost to ignite a bullish trend. He suggests that increased value capture from layer-2 solutions and the development of more successful applications on the platform would help drive Ethereum’s momentum.
Looking at the broader altcoin market, Krüger anticipates the emergence of a new altseason, but he believes that it will not be as explosive as previous rallies. He attributes this to the negative sentiment and positioning in the market, as well as the absence of clear catalysts for a significant surge. However, he acknowledges that altseasons can suddenly emerge without warning.
In conclusion, the economist’s analysis suggests that the current bull market still has potential for growth, but investors should be mindful of the specific dynamics of different cryptocurrencies and exercise caution in their investment decisions.
