Alex Krüger, a well-known economist, predicts that Bitcoin is entering a new “supercycle,” marking a significant shift in the cryptocurrency market.
In a recent podcast interview, Krüger highlighted how Wall Street’s involvement and the introduction of exchange-traded funds (ETFs) have transformed the market landscape.
Krüger suggests that the current market phase will feature less severe corrections compared to past cycles. While he acknowledges that market dips will still occur, they are expected to be less extreme and more manageable, with corrections likely limited to around 20%.
The increasing presence of traditional financial institutions is driving up demand for Bitcoin, Krüger notes. He anticipates that asset managers will advocate for higher Bitcoin allocations in portfolios, considering it as an emerging asset similar to “digital gold.”
Krüger remains confident in the supercycle theory as long as Bitcoin’s market value remains a small fraction of gold’s and it continues to be underrepresented in investment portfolios.
Institutional investors are becoming more bullish on the future trajectory of Bitcoin, piling up their reserves.
A recent report from Kaiko Research reveals that Bitcoin’s dominance in the cryptocurrency market has risen to 54.9%, marking its highest point since April 2021.
The Bank of Japan (BOJ) has opted to keep interest rates steady at 0.25%, leading to a sharp rise in the Nikkei index, which jumped over 700 points.
Renowned Bitcoin maximalist and JAN3 CEO Samson Mow met with Junichi Kanda, Parliamentary Vice-Minister of the Cabinet Office.