Economist Alex Krüger dismissed concerns about the crypto bull cycle ending, arguing that widespread bearish sentiment creates a contrarian buying opportunity as markets prepare for recovery.

In an Aug. 30 X post, Krüger noted that “most crypto charts now look so broken and bearish that is bullish,” citing significant long liquidations as evidence of capitulation.

The economist positioned bullishly for the coming week after experiencing losses earlier in the trading session.

Krüger observed that the recent market decline primarily affected Bitcoin and Ethereum, while altcoins stopped crashing earlier in the session. He added that such divergence often signals upcoming strength,

He emphasized that optimal buying opportunities emerge “when everybody is panicking, and not when we are all celebrating.”

The economist expects market volatility to persist until the Federal Reserve’s next meeting, noting that a rate cut remains incompletely priced into current valuations. Even with potential downside risks, Krüger expressed “extreme confidence that this is not the end of the cycle.”

No blow-off tops for now

When questioned about the longevity of the cycle without a blow-off top, Krüger explained his “super cycle” thesis. This framework envisions key assets continuing higher with “smaller dips and a lower slope” rather than traditional manic runs followed by major corrections.

Krüger does not anticipate a blow-off top in 2025, citing insufficient conditions for major manic moves except possibly for Solana due to accumulating demand.

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Author: Gino Matos