Economist and trader Alex Krüger recently expressed a bullish outlook for Bitcoin
Krüger has forecasted that Bitcoin could reach the $120,000 mark by June. This optimism is primarily driven by an expected distribution of approximately $5 billion to creditors of the defunct cryptocurrency exchange, FTX.
Impact of FTX Creditor Distribution
Krüger suggests that the funds recovered during FTX’s liquidation might significantly return to the market. Many large creditors are likely to redirect their recovered assets back into the cryptocurrency market, potentially stimulating an upward price movement for Bitcoin. This development could positively shift the overall sentiment in the crypto sector.
Alex Krüger: “I expect FTX’s nearly $5 billion distribution to act as a bullish catalyst for Bitcoin, with large creditors re-entering the market.”
However, Krüger also acknowledges potential risks to his prediction at the beginning of July. He points out that uncertainties surrounding U.S. import tariffs and possible trade disputes could instill anxiety in the markets.
Contrasting Market Opinions
In contrast, Justin Bennett, a noted market analyst, predicts a potential short-term downturn for Bitcoin. He highlights Bitcoin’s difficulty in surpassing the crucial $110,000 resistance level, suggesting a possible decline below $100,000.
Justin Bennett: “No change in my BTC analysis, just starting to break down. Sold at $111,269. Adding if it goes below $106,000. Targeting $96,000/$97,000 levels.”
Bennett’s analysis indicates that technical indicators might lead Bitcoin to test lower levels, implying trouble in reaching new highs.
At the time of writing, Bitcoin’s price stands at $107,435, slightly below the week’s high of $112,000.
Experts present varying scenarios to investors. While some predict price increases due to large fund movements, others caution about the price pressures from technical barriers and macroeconomic risks.
Future Bitcoin trends may hinge on macroeconomic developments and significant fund redistributions in the sector. Experts stress the importance of considering market dynamics and potential risks in investment decisions. Investors should closely monitor the impact of large fund distributions and U.S. government economic measures on the cryptocurrency market. The market oscillates between rally and correction predictions, urging investors to prepare for rapid changes.
