Renowned economist Alex Krüger suggests that Bitcoin (BTC) could receive a significant boost from several forthcoming catalysts. Krüger, addressing his substantial following of 176,300 on X, points out that Bitcoin recently dipped below the critical psychological support level of $60,000 due to concerns about selling pressure from the German government and pending Mt. Gox repayments, which have cast a shadow over the crypto market.

Despite the lingering apprehension caused by these factors, Krüger identifies five catalysts that he anticipates will reignite bullish momentum towards the end of the year. He explains, “These ongoing selling pressures may continue to unsettle the market in the near term, but they are finite. Looking ahead, my outlook for the year-end remains optimistic, primarily due to: a) stabilization, b) the Federal Reserve embarking on a rate-cutting cycle, c) the resurgence of crypto-macro correlations as Germany and Mt. Gox progress, d) potential positive regulatory shifts post-Trump’s presidency, and e) the commencement of creditor repayments from FTX.”

Krüger also highlights an image he shared, revealing that FTX is set to distribute approximately $14 billion to $16 billion in cash to its creditors, which could potentially inject much-needed capital into Bitcoin and the broader crypto market, depending on reinvestment decisions by recipients.

Commenting on Bitcoin’s current price action, Krüger predicts a consolidation phase around the $50,000 mark in the near future. “From a technical analysis perspective, BTC is likely to hover around the $50,000 range for some time, consolidating its position. Downside risks include levels around $52,000 and $48,000-$49,000 in the event of significant selling pressure driven by Mt. Gox, though scenarios below the low $40,000s appear unlikely without a major market correction.”

Krüger also points out a potential upside scenario, citing the 200-day moving average (DMA) at $58,500 as a critical level for Bitcoin’s rebound. “A bounce back towards the 200DMA seems probable, with aggressive selling likely to reemerge around that threshold.”

As of the latest update, Bitcoin is trading at $55,282, reflecting a decline of more than 4% on the day.

Source: Alex Krüger/X

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