Analyst Suggests Crypto Market May Have Bottomed After Weekend Sell-Off

Macro analyst Alex Krüger posits that the recent cryptocurrency market sell-off likely marked a tradable low, drawing parallels to the August 2024 crash which similarly bottomed on a Monday. Krüger characterizes the decline as a classic shakeout rather than the beginning of a sustained downtrend.

The current market movement mirrors last year's August crash in miniature, Krüger noted in a late-Friday post on X. He indicated plans to add to long positions by Monday's U.S. cash open, provided overnight trading maintained its panicky tone. The analyst's outlook prioritizes macroeconomic factors over crypto-specific dynamics.

This year's market break followed a familiar sequence: a modestly hawkish Federal Reserve, mixed Big Tech earnings, hotter-than-expected PCE inflation data, and finally a disappointing U.S. payrolls report. The July 31 PCE release showed headline inflation at 2.6% annually with Core PCE reaching 2.8%, slightly exceeding forecasts. Risk assets declined in unison, with cryptocurrencies tracking equities downward.

Earnings reports from tech giants compounded the risk-off sentiment. While Microsoft and Meta initially rallied after surpassing estimates, Apple's reception proved more tepid. The market's reaction to these developments suggests a temporary capitulation rather than fundamental deterioration.