Economist and crypto trader Alex Krüger says Bitcoin (BTC) and Ethereum (ETH) may have more downside potential but says a new crypto rally is almost in sight.
Krüger tells his 151,100 Twitter followers that the dip in the crypto markets was a reasonable response to the U.S. Securities and Exchange Commission (SEC) shutdown of Kraken’s staking services.
However, he predicts the crypto markets could bounce back in the next few days at the earliest.
“Quick crypto market views. Not adding size just yet. Think next bull run starts either with CPI [consumer price index] or end of month. BTC and ETH still have round levels below to run over. Not stressed about the market either. See this as a healthy pullback. Turn full bear on only if CPI beats by 0.2%.”
The CPI, which tracks the rate of change in US inflation over time, is slated for release on February 14th. It is a closely watched metric as traders see new data as an indication of the Federal Reserve’s next move in its efforts to combat inflation. A CPI print below consensus expectation is usually seen as a bullish signal as it could drive the Fed to consider pausing its aggressive interest rate hikes.
Krüger also predicts that the SEC is likely going to go after Coinbase next for its staking services.
“Don’t think so as the SEC is definitely going after Coinbase after. Now we enter pre-CPI limbo. No upside in my opinion till then. Accumulate next two weeks. Then, we moon.”
According to Krüger, the SEC’s actions against US crypto exchanges could have a positive effect on the industry later on.
“Positive narrative spin for later: banning US exchanges/custodians from offering staking services pushes staking off-chain or abroad. ETH is no longer centralized and under the grasp of US regulators. Decentralized ETH is better ETH.
See this spin kicking in in a few weeks… similar to how it happened when China banned Bitcoin (the last time!) and narrative spinners turned it into, ‘This is good for Bitcoin as now mining will be concentrated in the US instead of in China.’”
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency…
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