Economist Alex Kruger Expresses Bullish Outlook on Bitcoin, Attributes Optimism to ETF Approval

Economist and trader Alex Kruger is bullish on Bitcoin (CRYPTO: BTC) despite the cryptocurrency trading 13% below its all-time high.

What Happened: Kruger believes that Bitcoin has much further to go and is not close to the top of the cycle.

He attributes this optimism to the approval of spot Bitcoin exchange-traded funds (ETFs) in January, which he suggests could be changing Bitcoin’s traditional four-year halving cycles.

"The ETF and the massive flows into it make the correlation between risk and bitcoin more sustainable," Kruger said on a recent episode of the Unchained podcast.

Kruger highlighted that the market is evolving, with the halving now less impactful and ETFs in the picture.

He cautioned that a supercycle doesn’t mean continuous upward movement.

"We have shorter corrections… smaller drawdowns that last for shorter periods" if equities and the economy are performing well, he said.

Bitcoin is currently trading at $94,343, down around 13% from its peak of $108,268.

Why It Matters: The prediction of a Bitcoin supercycle comes as various opinions are being shared on the future of the cryptocurrency.

Recently, Anthony Scaramucci, the CEO of SkyBridge Capital, shared his strategy on Bitcoin, which includes a focus on altcoins like Solana while maintaining his Bitcoin holdings.

Scaramucci noted that the market maturing could lead to Bitcoin lending and earning mechanisms, which are seen in traditional banking.

On the other hand, economist Peter Schiff criticized Bitcoin, calling it the riskiest asset and disputing its reputation as a safe haven. Schiff’s comments highlight the ongoing debate about Bitcoin’s role in financial markets.

Moreover, Arthur Hayes, the co-founder of BitMEX, speculated that changes in U.S. banking regulations could propel Bitcoin to $1 million.

Hayes pointed to possible exemptions from the supplementary leverage ratio rule, which could lead to increased liquidity and a surge in Bitcoin’s price.

Price Action: Bitcoin was trading at $94,398 at the time of writing, up 0.43% over the past 24 hours, according to Benzinga Pro.

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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