Crypto Analyst Contends Markets Show Promise of Recovery

Is the cryptocurrency market so bad that it’s about to become good?

Crypto analyst and macroeconomist Alex Krüger made that argument Saturday (Aug. 30) in a post on X.

In comments flagged by CoinDesk, Krüger argued that “most crypto charts now look so broken and bearish that it’s bullish.” He contended that when price movements seem this severe, the panic has usually progressed enough that a reversal could soon arrive.

Krüger’s post included charts from Binance and derivatives dashboards, along with ether spot price charts, both of which had dropped below short-term upward trendlines, along with a chart showing solana being relatively resilient compared to bitcoin and ether.

He also shared bitcoin-USDT and ETH-USDT derivatives charts, which showed traders had been on the defensive. Krüger added that long liquidations had been “significant,” particularly in “the last two rounds after the close today.”

Although he is “bullish into next week,” Krüger said he doesn’t expect strong trends to materialize until after the Federal Reserve holds its Federal Open Market Committee committee later in the month.

He expects the central bank to reduce interest rates, which he argued is “not fully priced in.” With rates down, the cost of borrowing drops, which could increase crypto demand.

In other crypto-related news, PYMNTS wrote last week about the U.S. Commerce Department’s plan to put certain economic data on the blockchain.

While the move might seem like a “symbolic flourish” designed to appease Washington’s emerging pro-crypto bloc, PYMNTS argued it also raises a serious question for corporate leaders: If the government is anchoring its data to blockchain, should businesses think about following suit?

“For every company contemplating blockchain adoption, the decision boils down to economics,” that report said. “Blockchains, particularly public ones like Ethereum, impose transaction fees and latency that traditional databases do not. Permissioned, private blockchains can address performance issues but often re-create the same trust dynamics as conventional systems, except with added complexity.”

That means blockchain is best fitted for situations where multiple parties who do not entirely trust each other need to share data. If a company already controls the data environment, blockchain might not add much more value.

“But if you operate in ecosystems rife with conflicting incentives — supplier networks, financial consortia, cross-border logistics — blockchain’s tamper-proof guarantees may justify the cost,” PYMNTS added.