• Economist Alex Krüger believes Bitcoin (BTC) is on the edge of a breakout and has potential to continue rallying.
• He explains the potential impact of the BlackRock spot BTC exchange-traded fund (ETF) application.
• Krüger also notes that BTC is currently experiencing a temporary decorrelation from other risk assets due to regulatory pressure.
Overview
Economist and crypto analyst Alex Krüger is bullish on Bitcoin (BTC), expecting it to mount strong rallies in the near future with help from the BlackRock spot BTC exchange-traded fund (ETF) application. He also suggests that BTC could enter a liquidity air pocket between $31,000 and $37,000, which could ignite a dramatic rally. However, he does caution that BTC is currently experiencing a temporary decorrelation from other risk assets due to regulatory pressure.
The Potential Impact of BlackRock’s ETF Application
Krüger emphasizes the importance of the BlackRock spot BTC exchange-traded fund (ETF) application, suggesting that it could lead to strong rallies for Bitcoin in the near future if approved. He notes that while its approval isn’t guaranteed, it’s likely given current probabilities at around 50%-75%.
Bitcoin In A Liquidity Air Pocket
Krüger further suggests that technically speaking, Bitcoin has a liquidity air pocket between $31,000 and $37,000 originating from when crypto markets collapsed last year during the disintegration of the Terra ecosystem. If successfully entered this range, he states there would be room for significant gains for Bitcoin holders.
Temporary Decorrelation From Other Risk Assets
Although showing signs of promise overall, Krüger acknowledges that Bitcoin is currently experiencing a temporary decorrelation from other risk assets due to regulatory pressure in the US starting early April this year. However he does expect correlation between crypto assets and other investments to pick up again at some point in time down the line as regulations are relaxed or amended accordingly.
Conclusion
Overall economist Alex Krüger remains bullish on Bitcoin and expects it to mount strong rallies in the near future with help from potential approval of BlackRock’s ETF application as well as entry into a liquidity air pocket between $31,000 and $37,000 originating from when crypto markets collapsed last year during Terra’s disintegration. Although temporarily decoupled from other risk assets due to regulations pressure in US starting early April this year , long term prospects remain promising with correlation likely increasing again later on down line once regulations are adjusted accordingly .