A widely followed economist believes several catalysts on the horizon could give Bitcoin (BTC) a huge boost.
Economist Alex Krüger tells his 176,300 followers on social media platform
Kruger say that while selling pressure from Mount Gox creditors and the German government will keep crypto nervous in the coming months, he names five catalysts that he believes will spark renewed rallies by the end of the year.
“These selling flows will continue to exert selling pressure in the coming months and keep crypto residents on edge. However, these are finite and my outlook for the end of the year is very positive. Especially by:
a) soft landing
b) the beginning of the Fed’s austerity cycle
c) The crypto-macro correlation emerges again as Germany/Gox evolves
d) Trump’s victory means better regulatory prospects for crypto
e) beginning of the inflow of FTX creditors.”
According to an image shared by Krüger, FTX will pay its creditors around $14 billion to $16 billion in cash, which could give Bitcoin and crypto a much-needed boost if the recipients choose to reinvest the money in the market.
Says Kruger,
“FTX creditors should be ecstatic. They’ll get their money back in the fourth quarter, and Gox’s creditors will give them a great entry.
Looking at Bitcoin’s chart, Krüger thinks BTC will consolidate around the $50,000 level for some time.
“TA-wise, probably time for that BTC to trade in the $50,000 for a while and fill that area. On the other hand, looking at $52,000, and $48,000 – $49,000 if we see extreme Gox-driven selling pressure (low $40,000 makes little sense to me in a no hard landing scenario).
On the upside, we have a 200-day moving average (DMA) of $58,500. A return to the 200DMA seems most likely. Aggressive sellers will re-engage there.”
At the time of writing, Bitcoin is trading at $55,282, down more than 4% on the day.
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Generated image: DALLE3