A prominent economist anticipates that Bitcoin (
BTC
) could receive a significant boost from several upcoming catalysts.
Economist Alex Krüger informs his 176,300 followers on the social media platform X that Bitcoin recently dropped below its $60,000 psychological support level due to concerns about selling pressure from the German government and Mt. Gox repayments affecting the crypto market.
Krüger explains that although the selling pressure from Mt. Gox creditors and the German government may cause volatility in the crypto market in the short term, he identifies five catalysts that he believes will lead to a resurgence in Bitcoin’s value by the end of the year.
“While these selling pressures are likely to continue and keep crypto investors anxious in the coming months, they are temporary. My outlook for the end of the year is optimistic, primarily because of:
a) a smooth landing
b) the Federal Reserve beginning to cut rates
c) the correlation between crypto and macro events reemerging as Germany/Gox progress
d) potential positive regulatory changes for crypto following Trump’s victory
e) the start of FTX creditors receiving payments.”
According to information shared by Krüger, FTX is expected to repay its creditors approximately $14 billion to $16 billion in cash, which could potentially boost Bitcoin and the broader crypto market if the recipients reinvest the funds.
Krüger states, “FTX creditors should be pleased with this development. They will begin to receive their funds in the fourth quarter, and Gox creditors are providing them with a great entry point.”
Analyzing Bitcoin’s chart, Krüger predicts that BTC will consolidate around the $50,000 mark for a period.
“From a technical analysis perspective, it is likely that Bitcoin will trade in the $50,000 range for some time to establish support. On the downside, key levels to watch are $52,000, and $48,000 – $49,000 in case of significant selling pressure from Gox (a drop to the low $40,000s seems unlikely in a stable scenario).
On the upside, the 200-day moving average (DMA) at $58,500 is a crucial resistance level. A rebound towards the 200DMA is the most probable scenario. Aggressive selling is expected to resume at that level.”
At the time of writing, Bitcoin is trading at $55,282, representing a decrease of over 4% for the day.
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Image Source: Alex Krüger/X
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