Bitcoin Supercycle: Economist Alex Krüger Sees Room for Crypto Growth

Economist Alex Krüger has expressed his belief that the Bitcoin (BTC) and crypto bull market still has room to grow, despite the current cycle differing from previous ones in terms of time and upside magnitude. In a recent post on the social media platform X, Krüger reassured his 205,000 followers that crypto is currently in the midst of a supercycle.

Krüger stated, "BTC is stuck in a range, which I think eventually resolves higher. The supercycle theory is intact. Even though it applies to Bitcoin and crypto as a whole (market cap ex BTC and stables is considerably higher), most old alts don’t benefit from it on a sustained basis. Should not expect an insane wave of liquidity driving all cr*p higher for an extended period of time. Be selective."

According to Krüger, a supercycle doesn't mean that Bitcoin will keep going higher without experiencing painful pullbacks. He defined a supercycle as BTC trading in line with equities but with shorter and smaller drawdowns, such as 40% rather than 80%-90%.

When discussing Solana (SOL), Krüger referred to it as the "fastest horse" but warned that the altcoin is set to see "very heavy unlocks in the next two months," which means more supply is about to enter circulation. For Ethereum (ETH), the trader noted that the largest layer-1 protocol needs a boost to ignite bullish momentum, suggesting increased value capture from layer-2s (L2s) and a few more killer apps running on it.

Looking at the broader altcoin market, Krüger expects a new altseason to emerge, but it will likely be shorter and smaller than the rallies seen in previous years. He attributed this to the current negative positioning and sentiment, with the timing of the new altseason unclear in the absence of clear catalysts. Krüger emphasized that the new altseason could come out of nowhere.