Dogecoin co-creator and trader Alex Kruger discussed the reason behind the cryptocurrency market’s sudden bullish move this week
Billy Markus, one of the two founders of the original meme coin DOGE, took to Twitter to see growth in the cryptocurrency and stock markets and urged the community to share their reasons for it.
He received a response from economist and trader Alex Kruger, who provided a likely reason for the reversal.
“Clear Reason: Fed Pivot”
Kruger has shared what he believes is causing the current bullish reversal in crypto and stock prices – the recent “subtle but impressive” change in policy from the Fed from hawkish to dovish.
When Markus asked him for clarification, Kruger flagged his previous tweets about it.
On July 17, Kruger tweeted about it, stating that the coming week will be good for risky assets, which include Bitcoin and other cryptocurrencies.
At the time, Federal Reserve Chairman Jerome Powell announced the Fed’s new target of returning to 2 percent inflation and lowering it from the current all-time high of 40 years. This comes after the US Federal Reserve raised interest rates by 25 basis points first in March, 50 basis points in May and most recently by 75 points in June in an attempt to curb rapidly rising inflation.
Clear reason: Fed pivot
— Alex Kruger (@krugermacro) June 24, 2022
Bitcoin Adds 7.63%, Ethereum Gains 17.66%
For the past two days, the two largest cryptocurrencies, Bitcoin and Ethereum, have been in the crypto market along with most other coins.
The crypto-BTC flagship is sharply higher, gaining 7.63 percent and now trading at $21,398. The second largest crypto is up almost 18 percent, rising from $1,048 to $1,1233. However, as of this writing, Ethereum is changing hands at $1,226.
“Crypto Ice Age”
While ahead of this surge, many were talking of a new crypto winter that could last around 3-4 years, regular crypto critics have predicted another collapse of Bitcoin to $10,000 and below, including Goldbug Peter Schiff, founder of SchiffGold Wealth Management Fund.
Another famous Bitcoin opponent, veteran trader and philosopher, author of Black Swan, Antifragile and other books, Nassim Taleb, according to his recent tweet, believes that the term “crypto winter” does not refer to the near future of digital asset market can be applied as it assumes a transient seasonal state.
What he is proposing should be replaced in a “crypto ice age” — that is his long-term prediction of how low crypto prices could fall.