Trader and economist Alex Kruger is forecasting a rise for the two largest cryptocurrencies in market value over Christmas. According to him, the gift Santa Claus will give to traders will be a new high that will mainly boost BTC and ETH.
For Kruger, this increase will be driven by unleveraged traders and could reach the end of the year.
According to the analyst, in this scenario, BTC could rise above $55,000 and ETH could reach a new all-time high.
“The chances are high, in my opinion, that we will have a Santa Claus rally at the end of the year. BTC back to $50,000, nothing too crazy. ETH to all-time highs,” he said.
Furthermore, he says the rally will be a disaster for traders who have sold their Bitcoins and therefore may not have the strength to rebuy at higher levels.
BTC and ETH
Kruger said he sees BTC surpassing $55,000 due to the presence of strong bullish sentiment:
“I think the BTC can easily exceed $50,000 because there’s a sign of optimism.”
However, he said that such optimism could also generate a bubble that could burst and drive the price of BTC down. But she considers this possibility very unlikely given the high sentiment on social media.
Finally, Kruger also commented on the Federal Reserve’s decision to raise interest rates from 2022. According to the analyst, this did not end the bull cycle for BTC.
“The Fed has become aggressive and the asset purchase program will be phased out. So it’s a good idea not to allow optimistic expectations to get too ambitious.”