EddieJayonCrypto
29 Jul 24
Renowned economist Alex Krüger believes that Bitcoin and crypto are in a supercycle, driven by significant changes in the market structure due to Wall Street's involvement. He anticipates limited downside volatility and increased buying pressure as institutions seek greater exposure to digital asset...
Economist Alex Krüger is predicting a cryptocurrency supercycle, driven by increased digital asset exposure from Wall Street. This trend is expected to lead to limited downside volatility and heightened buying pressure. Krüger believes that Bitcoin and crypto are in a supercycle due to significant changes in the market structure resulting from Wall Street's involvement. He anticipates shallow corrections of around 20% to 60% and emphasizes the impact of the growing narrative of Bitcoin as digital gold. As of now, Bitcoin is valued at $68,123.
In a discussion on the A blocmates Orange podcast, Krüger explained that Wall Street and the traditional finance world have dramatically altered the market structure of digital assets. He expects volatility to the downside to be much more limited and buying pressure to vastly increase as a result of pressure from Wall Street to increase their exposure to digital assets. Krüger emphasized that a supercycle does not mean the absence of bears or corrections, but rather shallow corrections of around 20% to 60%. He attributes this change to the arrival of Wall Street and exchange-traded funds, shifting the market structure. According to Krüger, the ownership of Bitcoin remains low on an aggregate basis and in portfolios, with Wall Street pushing for it to represent around 2%. He believes this supercycle view will persist as long as Bitcoin's market cap remains a small fraction of gold's. At the time of writing, Bitcoin is worth $68,123.