Economist and trader Alex Krüger outlines the path forward for Bitcoin (BTC) while highlighting one crypto asset sector that could surpass others.
Kruger tells are 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 5 [of 2024 US election]. Bitcoin will have another good year. February will be the best performing month, with the Fed’s recent hawkish stance continuing to hold back broader markets in the near term.”
Bitcoin is trading at $96,065 at the time of writing, about 11% below its all-time high of about $108,135 reached on December 17, 2024.
According to the economist and trader, varying results will be recorded in the different crypto sectors.
“The performance gaps between crypto assets will be greater 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 of them are.”
While predicting that U.S. stock indexes “will also have a good year,” Kruger says the biggest risks for 2025 include that President-elect Donald Trump will “crack down too hard on immigration.” It is believed that such a move could increase inflation because a reduced labor supply could increase hiring costs and, as a result, force the Federal Reserve to raise interest rates.
So does the trader and economist say that the top of the current cycle could come later than expected due to the actions of the Federal Reserve.
“The timing of a Fed easing could easily derail the widely held view that crypto peaks around the end of the first quarter. If stock prices rise sharply in March or April, what do you think crypto will do? Macro trumps both seasonality and Bitcoin’s four-year cycle.”
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Generated image: Midjourney