Economist and crypto trader Alex Kruger predicts that Cryptocurrencies to be revived right at the beginning of the next year.
Kruger tells his 105,800 Twitter followers that Bitcoin (BTC) has experienced a “first week of the year effect” in the past four years, with an increase of between seven percent and 36 percent.
“Effect of the first week of the year
$ BTC gives the first week of:
2021 + 36%
2020 + 13%
2019 + 7%
2018 + 18%
Bears killed Santa Claus, but have you heard of the wise men? “
According to the economist and crypto trader, cryptocurrencies will rise in early January before sentiment turns bearish ahead of a meeting of the Open Market Committee (FOMC) to set US monetary policy.
“Still expect a strong crypto“ up ”market in early January, driven by cash inflows.
Then risk ahead of the next FOMC (January 26, 2022) when the next inflationary pressures get too hot (January 12, 2022). “
When asked about his outlook for the next year, Kruger says the broader crypto asset sector could grow by at least 30% and up to 50% in 2022.
“+30% / +50%
Both bulls and bears will be disappointed. “
The Federal Reserve closed in mid-December after a surge in inflation signals that there will be at least three rate hikes in 2022.
About a week ago, Kruger said that traders will favor higher interest rates over holders.
“Hiking” Bear market
Hiking = headwind (ceteris paribus flatter slope), increased volatility
This requires higher cash on hand and more aggressive profit taking, that is, a market of the traders rather than a market of the owners.
Not for doomsday views. “
Check price promotion
Source: Crypto News Deutsch