A closely followed economist thinks that the Bitcoin (BTC) and crypto bull market still has room to run to the upside.
Alex Krüger tells his 205,000 followers on the social media platform X that crypto investors are disappointed because the current cycle appears to be different from the ones witnessed in the past in terms of time and upside magnitude.
But the economist says that investors should zoom out because he thinks crypto is in the midst of a supercycle.
“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 of time. Be selective.”
According to Krüger, a supercycle doesn’t mean that Bitcoin will keep going higher without witnessing painful pullbacks.
“My definition has been playing out: BTC trades in line with equities [but with] shorter smaller drawdowns, e.g. 40% rather than 80%-90%.”
Looking at Solana, Krüger calls SOL the “fastest horse,” but he warns that the altcoin is set to see “very heavy unlocks in the next two months,” meaning that more supply is about to enter circulation.
As for Ethereum (ETH), the trader notes that the largest layer-1 protocol needs a shot in the arm to ignite bullish momentum.
“Ethereum … needs an intervention. Increased value capture from L2s (layer-2s). Plus a few more killer apps running on it.”
Turning to the broader altcoin market, Krüger says that he expects a new altseason to emerge but it will likely not be as explosive as the rallies seen in previous years.
“Expect a new alt season at some point. Shorter and smaller than prior ones. Positioning is very negative, and so is sentiment. but timing is unclear in the absence of clear catalysts. It can come out of nowhere.”
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