Markets may look broken, but economist Alex Krüger believes that’s exactly what makes them bullish. In his latest analysis, the well-followed trader argued that widespread fear and heavy liquidations are clearing the path for a rebound rather than signaling the end of the cycle.
Krüger pointed to recent waves of long liquidations as evidence that traders have already capitulated. While Bitcoin and Ethereum bore the brunt of the sell-off, he noted that many altcoins stopped falling earlier, a divergence he interprets as an early sign of strength returning to the market. “The best time to buy,” he suggested, “is when panic dominates, not when euphoria runs high.”
The economist expects volatility to persist until the U.S. Federal Reserve’s next policy decision, where a rate cut remains only partially priced into valuations. Even if markets slip further in the short term, Krüger insists that the broader bull cycle is intact. He expressed confidence that the downturn represents a shakeout of weak hands, not a structural breakdown.
Krüger also pushed back on the idea that this cycle will end in a dramatic blow-off top. His “super cycle” framework anticipates gradual advances with shallower dips, rather than the manic peaks and brutal corrections that defined earlier crypto cycles. The only possible exception, he said, might be Solana, which continues to see strong demand building under the surface.
Looking ahead, Krüger suggested that 2026 could bring the next major peak once changes in Fed leadership align with macro conditions. For now, however, he expects a steadier grind higher rather than parabolic blowouts.
Addressing market psychology, Krüger dismissed claims that optimism is overextended. He sees sentiment as balanced between bulls and bears, with options data even showing a tilt toward fear as puts trade at premiums over calls. September’s reputation for weakness, he added, is “statistical noise” rather than a meaningful trend.
Taken together, Krüger’s analysis paints the current turbulence as a contrarian opportunity. With liquidations flushing out excess leverage and investors pricing in uncertainty around Fed policy, he argues that the market is primed for recovery rather than collapse.
