Bitcoin's Latest Dip: Déjà Vu of 2024?

Economist Alex Krüger has drawn parallels between the current Bitcoin (BTC) market dynamics and those observed in early 2024. In a recent analysis, Krüger suggested that the recent severe correction in Bitcoin's price could be a replica of the events that transpired in April 2024, when the flagship crypto asset collapsed to range lows before embarking on a series of rallies.

Krüger, who has a substantial following on the social media platform X, believes that Bitcoin's latest dip is significant but not extraordinary. However, he cautioned that the uncertainty surrounding US President Donald Trump's tariff policies poses a significant risk to the crypto markets. He noted that the trigger for the last move down was precisely tariffs news, which could potentially impact the market again.

Despite the uncertainty, Krüger remains optimistic about Bitcoin's prospects. He believes that the current price level could be a buying opportunity, similar to the situation in early 2024. He also acknowledged that severe Bitcoin corrections occur multiple times a year and may present opportunities for investors to buy at lower prices.

In a previous analysis, Krüger had suggested that investors should adopt a long-term perspective, as he believes that crypto is currently in the midst of a supercycle. This supercycle theory, he argues, is intact and could include painful Bitcoin pullbacks. However, he cautioned investors to be selective in their investments, as not all altcoins may benefit from the supercycle on a sustained basis.

At the time of writing, Bitcoin is trading at $84,608, down 4.8% in the last 24 hours. Despite the recent correction, Krüger's analysis suggests that the current Bitcoin setup may be a replica of early 2024, with the potential for further upside in the future.