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- According to Kruger, Bitcoin may soar to $35,000, a 52% increase from its current price.
- Limited correlation between stocks and digital assets: unlikely to affect the price of bitcoin
Popular cryptocurrency economist Alex Kruger has emphasized that it is extremely likely that Bitcoin will reach $30K to $35K this year. But Kruger warned investors that a retracement to the $19K to $23K is also conceivable when the market stabilizes.
He told his over 150K Twitter followers that “the bearish and risk-averse will be able to safely buy the bitcoin dip from 3K2 to 2K8 later in 2023.”
Kruger says that such a Bitcoin increase would be consistent with how markets typically function. For instance, a break through $30,000 would typically be followed by a retreat in market dynamics. Markets frequently exceed key round levels, setting off stops, luring losers in, and flushing them out. Additionally, $30,000 to $35,000 looks doable.
The veteran crypto economist emphasized that after Bitcoin’s price declines from $32,000 to $28,000 later this year, risk-averse traders will have a chance to enter the market.
One of the followers in the comment section asked, “Do you think a drop in markets from poor earnings guidelines might pull BTC down?”
Kruger responded by saying that a reduction in earnings is not his base case and that large moves in crypto are no longer in tandem with stocks. He added, “Correlation is still there but accounts for a small fraction of PA. A very hawkish FOMC could do it, but the next FOMC looks like a coin toss to me.
In simpler words, the economist is trying to say that since there is little correlation between stocks and digital assets, poor earnings predictions by publicly traded companies are unlikely to result in a decline in the price of Bitcoin.
However, Kruger thinks that the Federal Open Market Committee’s support for interest rate increases and other monetary policy tightening measures will impact the crypto markets, adding that it is still unclear what will happen at the next Fed meeting.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
