Recently, the cryptocurrency market has experienced a significant fall, sparking widespread discussion among industry insiders. Senior cryptocurrency market analyst Alex Krüger put forward a thought-provoking perspective, suggesting that the current market adjustment bears similarities to the falling pattern observed last August, rather than being solely influenced by political rhetoric.

Krüger pointed out that the real pressure in the market comes from the recent tensions between the US and Russia regarding nuclear submarines and related war rhetoric. He predicts that Bitcoin may hit bottom in the near future, and then the market will gradually stabilize.

In terms of monetary policy, Krüger has made his own judgment on the movements of the Federal Reserve. He expects a rate cut in September, which will provide strong support for the encryption market in the fourth quarter. Krüger believes that robust economic fundamentals, increased expectations of rate cuts, along with the rising adoption rate of cryptocurrencies by institutions, will collectively drive Bitcoin to strengthen before the end of the year. He has given an ambitious one-year target price of $200,000 to $250,000.

In the long term, Krüger expects that the Federal Reserve may adopt a more accommodative monetary policy stance before May 2026. By then, the economy may show signs of overheating, which would further benefit the performance of risk assets. This view aligns with predictions from some Wall Street institutions, such as Morgan Stanley, which previously anticipated that the Federal Reserve would gradually lower interest rates between 2025 and 2026 in response to slowing economic growth.

Overall, Krüger holds a cautious attitude towards the short-term market but remains optimistic about the performance of encryption assets in the medium to long term, particularly favoring Bitcoin's safe-haven properties during interest rate cuts and geopolitical uncertainties. For investors, closely monitoring the Federal Reserve's policy direction and changes in global financial market liquidity will be key to grasping potential market turning points.

In this volatile market environment, investors need to maintain a clear mind, comprehensively consider various influencing factors, and make prudent investment decisions. The future trend of the encryption currency market will undoubtedly continue to be the focus of attention in the financial sector.