Crypto Market Outlook After the Recent Crash: Analyst Alex Krüger Shares His Predictions

Crypto Market Outlook After the Recent Crash

In the wake of the recent sharp decline in Bitcoin and major altcoins, renowned crypto analyst Alex Krüger has provided deep insights into the current state of the market and what might lie ahead.

According to Krüger, the current market correction resembles the August 2024 crash, which was triggered by a combination of macroeconomic volatility and negative crypto-specific news.

“This is a near mirror of last August’s market behavior,” said Krüger. “Back then, the Bank of Japan’s unexpected rate hike, a hawkish Federal Reserve, and weak employment numbers sent shockwaves through both traditional and digital markets.”

Today, a similar pattern is unfolding, Krüger explains, with a hawkish Fed, rising PCE inflation, and profit-taking in the stock market creating pressure. Although there is no active carry trade issue this time, he highlighted the role of leveraged investor liquidations in intensifying the downturn.

Market Noise vs. Real Drivers

Krüger downplayed politically driven concerns—such as former President Trump’s removal of the Bureau of Labor Statistics (BLS) chief or nuclear rhetoric—as “background noise.” The real market tremors, he insists, are driven by technical and structural factors, particularly the sell-off of over-leveraged positions.

He pointed to Coinbase’s shaky balance sheet, uncertainty around MicroStrategy’s stock sale mechanism, and ongoing debates over the sustainability of Ethereum’s Digital Asset Treasury Company model as key contributors to this week’s negative sentiment.

Despite short-term headwinds, Krüger believes the SEC’s “Project Crypto”—a major initiative to bring securities laws onto the blockchain—is a highly positive long-term development for the crypto industry.

Has the Market Bottomed Out?

Krüger is cautiously optimistic, suggesting that either a market bottom has already formed or that it will solidify early next week alongside a rebound in U.S. equities.

“This feels like an aggressive shake-out,” he noted. “Much like last August, I plan to increase my long positions before U.S. markets open on Monday.”

What’s Next? September Could Be the Turning Point

Looking ahead, Krüger highlights the Jackson Hole Economic Symposium and the possibility of a Federal Reserve rate cut in September as pivotal. The recent departure of Fed Governor Kugler, he argues, gives Trump a rare early appointment opportunity, potentially softening the tone of the Fed if a dovish replacement is selected.

Krüger remains bullish on the medium-term trajectory of the market, predicting that rate cuts combined with rising adoption of digital assets could kickstart a strong rally beginning in September 2025.

He even envisions a scenario where Bitcoin surges to between $200,000 and $250,000 by mid-2026—especially if a dovish Fed policy emerges by May next year.

Risks Still Exist

While optimistic, Krüger cautions about potential hurdles. U.S. tariffs, persistent inflation, and the weakening momentum of digital asset treasury firms could spark renewed volatility by year-end. However, he classifies these as secondary risks for now.