Markets
A Prominent Trader Explains the Crypto Market Crash and What Could Happen Next
Renowned economist and trader Alex Kruger analyzed the factors influencing the recent correction in the cryptocurrency market, in particular the importance of the “Trump trade”.”
What happened: Krüger highlighted a number of factors, including the vulnerability of technology stocks, the shift from technology stocks to small-cap stocks, and the Bank of Japan’s impending ramp-up and ramp-down of quantitative easing.
It also has discussed the impact of the attempted murder on the former president Donald Trump and the partial dissolution of the “Trump trade”. The economist also sees the appointment of My life is nice as the Presidential Candidate as one of the factors contributing to this.
Krüger highlighted the role of correlation algorithms between stocks and cryptocurrencies, the technical correction between cryptocurrencies, and the narrative around Bitcoin becoming a strategic reserve activitiesHe also mentioned the Bitcoin BTC/USD Exchange Rate conference and bigger than expected Ethereal ETH/USD Sell Flows from Greyscale as factors.
Because matter: Krüger’s analysis provides a comprehensive understanding of the dynamics that influence the cryptocurrency market. Despite the disappointing launch of Ethereum ETFsnothing major has changed, he adds. His forecast sees the market trading on the election theme for the rest of the year, with Republicans likely to win, which he sees as bullish.
He added that the current market has estimated about a 60% probability of Trump’s victory. While he says the probability could fluctuate, he predicts short cycles of euphoria/depression until November with an uptrend.
Kruger also expects the Federal Reserve to begin its rate cuts cycle in September and believes there will be no hard landing, keeping things constructive on the macro side. Kruger’s insights offer valuable context for investors navigating the volatile cryptocurrency market.
What’s next: The influence of Bitcoin as an Institutional Asset Class It is expected to be explored in depth at the next Benzinga The Future of Digital Assets event of November 19th.
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