Economist Alex Krüger says Bitcoin (BTC) is on the brink of a breakout and still has room to maneuver — here’s his target

Economist and crypto analyst Alex Krüger is bullish on Bitcoin (BTC), saying the king cryptocurrency could see strong rallies in the near future.

In a new Wolf of All Streets stream, Krueger explains the importance of the BlackRock Spot BTC Exchange Traded Fund (ETF) application.

He also says that Bitcoin has technically had a liquidity cushion of between $31,000 and $37,000 since crypto markets crashed last year during the disintegration of the Terra ecosystem. If BTC enters this range convincingly, Krüger says it could ignite a fairly dramatic rally.

“We have very strong news [of the] BlackRock Bitcoin ETF expected to be approved. It’s debatable whether or not it will be approved – the likelihood is debatable – the point is we’ve only just heard 20% of this news and the likelihood is around 50% if not around 75%. So the point is, on the one hand, the market isn’t positioned correctly for it. The other point is that the news is huge and not properly priced in yet.

Technically, we are right on the edge of resistance between $31,000 and $37,000 with $37,000 being the May 18 moonstand or whatever… When some of us were having heart attacks and when some of us were before joy danced. Anyway. That is the point of Bitcoin. We’re about to erupt. Once it’s broken, it should keep running.”

Krüger also says Bitcoin is experiencing a temporary decorrelation to other risky assets due to regulatory pressure, but he anticipates BTC and cryptocurrencies are increasingly moving in sync with other assets like stocks.

“In terms of correlation, I would like to say that regulators in the US have been very aggressive since early April this year. Many large market makers began to take a step outside of the market. This caused correlations to drop to 2020 levels before Bitcoin was a macro asset. This is temporary.”

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