Economist and Trader Alex Krüger is outlining the path forward for Bitcoin (BTC) while highlighting one crypto asset sector that could outshine others.
Krüger tells his 196,700 followers on the social media platform X that Bitcoin will have a bullish year in 2025.
“My prediction for 2025 is simple: higher. Nothing has fundamentally changed since November 5th [of 2024 US election]. Bitcoin will have another good year. February will be the best performing month, with the recent Fed hawkishness still holding broader markets back short-term.”
Bitcoin is trading at $96,065 at time of writing, around 11% below the all-time high of around $108,135 reached on December 17th, 2024.
According to the economist and trader, there will be varying results recorded across the various crypto sectors.
“Performance dispersion across crypto assets will be larger than ever. The crypto meets AI category will evolve and continue to outperform. Altcoins will pump and dump as usual, an expression of how illiquid most are.”
While predicting that US stock indices will “also have a good year,” Kruger says that the major risks for 2025 include President-elect Donald Trump “going too hard on immigration.” Such an action, it is believed, could increase inflation as reduced labor supply could raise hiring costs and consequently force the Federal Reserve to raise interest rates.
The trader and economist also says that the top for the current cycle could come later than expected due to the Federal Reserve’s actions.
“The timing of the Fed going back dovish could easily derail the widely held view that crypto tops around the end of Q1. If equities ramp up hard in March or April, what do you think crypto will do? Macro trumps both seasonality and the Bitcoin four-year cycle.”
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