Bitcoin Is ‘Highly Likely’ In A Supercycle: Expert Explains Why
Well-known macro analyst Alex Krüger believes that Bitcoin is “most likely” in a super cycle. Kruger explains his view via X, highlighting Bitcoin’s current unique trajectory compared to previous market cycles.
A Bitcoin supercycle is a theoretical phase in which the price of Bitcoin is expected to rise significantly beyond its traditional boom and bust cycles. This concept means that increased mainstream adoption drives long-term growth, leading to a stronger and more durable upward trajectory than the typical four-year halving cycle in Bitcoin’s history.
Is Bitcoin in a Super Cycle?
About the President-elect Donald TrumpKrueger, who has made a U-turn in support of Bitcoin and plans to build a strategic Bitcoin reserve, said: “Do yourself a favor and stop comparing this cycle to previous cycles. Bitcoin is most likely in a super cycle. The crypto industry just went through the most dramatic change in history, a fundamental 180-degree turn,” the analyst said.
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Krueger also mentioned the rapid growth of Bitcoin and the cryptocurrency industry, noting that it has gone from “a barely legal pariah hated by the country to one of the top industries embraced by the country” in a matter of weeks – which he described as One described the change as “so big”. Extreme cases are hard to find comparable in modern times. “
Kruger drew comparisons to financial changes throughout history, highlighting the transformative impact of the 1970s on gold. “Maybe the gold of the 1970s was one of them. The 1970s were a decade of golden change. The End of Nixon gold standard The collapse of the Bretton Woods system in 1971 caused the price of gold to soar from $35 an ounce to $850 in 1981,” he explained.
Krueger also addressed the timing of Bitcoin’s potential peak, indicating that based on his previous analysis, it would be reasonable to expect a major local peak around March. “A lot depends on the upward slope, funding rates and the broader economy. But one shouldn’t equate a major local top with the start of a bear market,” he noted.
He acknowledged the possibility of a bear market, but emphasized that “the conditions for a bear market are not yet present. It is too early to expect a peak. Bitcoin bull markets always last for months. It has only been 33 days since Trump released the Kraken. “
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Krueger emphasized the volatile nature of market sentiment, adding a warning: “When you finally believe what I just wrote, it will reach its peak.” In this statement, Kruger highlighted the sentiment that often affects markets Dynamic psychological factors, particularly the collective belief that the market has peaked.
X user Paradox Parrot (@Paradoxparrot) commented on Krüger’s assertion, saying: “Agreed. But ‘this time it’s different’ is a good way to round out it.” In response, Krüger acknowledged the cycle surrounding the issue sexual skepticism Altcoinsasserted: “Of course. Alts will round-trip most of it. It’s the nature of the beast. The mind this time has proven to be different many times on many levels. I’ve been predicting and covering it in detail here since mid-2023 That. BTW there are two reasons for this: A) lack of fundamental demand driver and more importantly B) lack of liquidity (which is why they are rising in such a vertical fashion).”
Despite Kruger’s optimistic outlook, not all experts agree with the supercycle hypothesis. Chris Burnsike, Partner, Placeholder VC, supply Contrasting Views on X on December 7th: “Bookmark this for later: Supercycles are never real – everything is cyclical, although the cycles may vary. (…) Believe in Superbike’s The idea is you’ll never sell and go back and forth just ask anyone who has never sold a house in 2021.”
At press time, BTC was trading at $98,287.
Featured image created using DALL.E, chart from TradingView.com
