Economist and crypto analyst, Alex Krüger, has expressed a bullish outlook for Bitcoin (BTC), foreseeing the potential for significant rallies in the near future.
Speaking during a recent Wolf of All Streets stream, Krüger highlighted the significance of the BlackRock spot BTC exchange-traded fund (ETF) application.
Krüger emphasized that Bitcoin currently faces a liquidity air pocket between $31,000 and $37,000, a result of last year’s crypto market collapse during the disintegration of the Terra ecosystem. If BTC successfully enters this price range, Krüger believes it could trigger a dramatic rally.
Drawing attention to the potential approval of the BlackRock Bitcoin ETF, Krüger stated that while its approval remains uncertain, the market is inadequately positioned for such a positive development. He estimates the probability of approval to be around 50% to 75%. Considering the significant impact of this news, Krüger believes that the market has not yet fully priced it in.
In terms of technical analysis, Krüger pointed out that Bitcoin is currently approaching a crucial resistance level between $31,000 and $37,000, with $37,000 being a key lunar level from May 18th. He referred to this point as the “edge of a breakout,” indicating that once this resistance is breached, Bitcoin is likely to continue its upward trajectory.
Furthermore, Krüger discussed Bitcoin’s temporary decorrelation from other risk assets due to regulatory pressure. He explained that aggressive actions taken by regulators in the US, starting from early April, caused many large market makers to step back from the market.
Consequently, correlations between Bitcoin and other assets broke down to levels seen before Bitcoin became a macro asset in 2020. However, Krüger considers this decorrelation to be temporary and expects Bitcoin and crypto to eventually resume moving more in sync with other assets like equities.
With Krüger’s optimistic outlook and the potential approval of the BlackRock Bitcoin ETF, the cryptocurrency market appears to be on the cusp of exciting developments that could significantly impact Bitcoin’s future performance.
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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