Economist Alex Krger Turns Bullish On Bitcoin And Ethereum, Says Markets Are Gearing Up For Bull Run

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Economist and crypto trader Alex Krger is getting bullish on Bitcoin (BTC) and Ethereum (ETH), predicting they will end the year strong.

Krger tells his 153,900 Twitter followers that the Federal Reserve is likely near the end of raising interest rates to tame inflation, and will likely pivot in December.

He thinks the markets will anticipate the Fed’s pivot and begin to rally as early as August.

The Fed carried out rate hikes of 20 x 25 basis points (basis points) in its fastest and most aggressive hike cycle in history. Which means that at least 90% of Fed hikes are late (if not all of them). For me, that’s all that matters and it’s easy to stay for a long time. This has been my point of view all year.

My base case scenario is a December pivot and a bull market brewing in early August to deal with that. For what? The economy is cooling and inflation is falling. The Fed is forced to overshoot (hike) due to its past mistakes, which increases the chances that it will pivot when the data changes.

Krger says that even if inflation turns out to be stickier and the Fed doesn’t pivot in December, he still thinks markets will end 2023 up from where they’re trading today.

If core inflation remains sticky, there will be no pivot in 2023, but with the Fed at least 90% doing whatever (and the AI ​​revolution) on the upside at the end of the year, it’s always a good bet.

The crypto trader also says he is taking long positions in BTC and ETH, betting on them having big upside moves.

According to Krger, Bitcoin is struggling to clear the key $30,000 level as investors sell on rallies and volume.

However, Krger says that if Bitcoin can breach the $30,000 level, the king of crypto will likely surge if it fails a head and shoulders pattern, which is used in technical analysis to determine a reversal. from uptrend to downtrend, will not form.

Meanwhile, in BTC land, it has been difficult to push higher as everyone has been emboldened to sell rips and theft. But if by chance the market manages to break above $30,000, then TA (technical analysis) says it’s a major failure [head and shoulders] bear trap [and] high chances of a strong tear.

I’m decently long BTC and ETH via spot and calls, and ready to get more aggressive later in the year.

However, the crypto trader warns that if Bitcoin retests $26,000, the digital asset could show further weakness.

On the downside, if BTC drops back down to $26,000, the chart tells me there should be decent color on a run of stops (good place to cut risk if very long).

Bitcoin is trading for $27,702 at the time of writing, while Ethereum is worth $1,904.

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