Markets
Prominent Trader Details Cryptocurrency Markets Crash and What Could Happen Next
Renowned economist and trader Alex Krueger analyzed the factors influencing the recent correction in the cryptocurrency market, in particular the importance of the “Trump trade”.”
What happened: Krüger highlighted a series of factors, including the vulnerability of tech stocks, the shift from tech stocks to small caps and the impending increase and reduction of quantitative easing by the Bank of Japan.
He also has discussed the impact of the assassination attempt on the former president Donald Trump and the partial end of “Trump trade.” The economist also sees the appointment of Kamala Harris as the Presidential candidate as one of the contributing factors to this.
Krüger highlighted the role of stock-crypto correlation algorithms, the technical correction in crypto assets and the narrative around Bitcoin becoming a strategic reserve assetHe also mentioned the Bitcoin Bitcoin/USD conference and bigger than expected Ethereum ETH/USD sales have been flowing since Shades of grey as factors.
Why is this important: Krüger’s analysis provides a comprehensive understanding of the dynamics affecting the cryptocurrency market. Despite the disappointing launch of Ethereum ETFNothing major has changed, he adds. His forecast is that the market will move around the election theme for the rest of the year, with a likely Republican victory, which he considers a bullish trend.
He added The current market has priced in a probability of Trump winning of about 60%. While he says this probability could fluctuate, he foresees short cycles of euphoria/depression through November with an upward trend.
Krüger also expects the Federal Reserve to begin its rate-cutting cycle in September and believes there won’t be a hard landing, which keeps things constructive on the macro side. Kruger’s insights provide valuable context for investors navigating the volatile cryptocurrency market.
And after: The influence of Bitcoin as an Institutional Asset Class should be explored in depth in Benzinga’s next project The Future of Digital Assets event on November 19.
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