Economist and crypto trader Alex Kruger is expressing bullish sentiment toward Bitcoin (BTC), saying that the king crypto could mount a massive rally in 2023.
Kruger tells his 150,800 Twitter followers that the top crypto asset by market cap could rally up to $35,000, a jump of around 52% from current levels, before a correction occurs.
According to Kruger, such a rally by Bitcoin would be in line with how markets normally work.
“Breaking through $30,000 then pulling back would be normal market dynamics. Markets tend to run key round levels over, trigger stops, bring suckers in, then flush them out. And $30,000 – $35,000 looks very doable.”
Bitcoin is trading for $22,977 at time of writing.
Asked whether Bitcoin could fall to between $19,000 and $20,000 this year after its surge, Kruger says that it is probable, but notes that $23,000 is more likely.
“Yes definitively. It’s still too close for it not to be probable. But I’m not betting on it at the moment. Been expecting consolidation around $23,000 then higher. By the way, $23,000 or $19,000 doesn’t make much of a difference unless playing big or playing alts.”
The economist also says that weak earnings projections by public companies are unlikely to trigger a fall in price for Bitcoin since stocks and digital assets currently have a weak correlation.
However, Kruger says that the Federal Open Market Committee (FOMC) continuing to be in favor of hiking interest rates and other monetary policy tightening measures is likely to impact crypto markets, adding that what will happen during the next Fed meeting is still up in the air.
“A drop from earnings is not my base case and [looking] at most big moves in crypto, they are not in tandem with equities any longer…
Correlation is still there but accounts for a small fraction of price action. A very hawkish FOMC could do it, but next FOMC looks like a coin toss to me.”
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