Economist and trader Alex Krüger recently shared his thoughts on Bitcoin's future and highlighted a specific area in crypto that might outperform others in 2025.

He communicated his insights to his 196,700 followers on X, predicting a strong year for Bitcoin. “My prediction for 2025 is simple: higher,” he stated. “Nothing has fundamentally changed since November 5th [the US elections in 2024]. Bitcoin will have another good year. February will be the best month, as the recent Fed hawkishness is still holding broader markets back in the short term.”

As of now, Bitcoin is trading at $96,065. That’s about 11% below its all-time high of around $108,135, which was reached on December 17, 2024.

Krüger expects to see different results across various crypto sectors. He mentioned, “Performance dispersion across crypto assets will be larger than ever. The crypto meets AI category will evolve and continue to outperform. Altcoins will pump and dump as usual, which shows how illiquid most of them are.”

While he believes US stock indices will also do well in 2025, he pointed out potential risks. One big concern is President-elect Donald Trump’s approach to immigration. Krüger thinks that tough actions could lead to higher inflation. A reduced labor supply might raise hiring costs, which could force the Federal Reserve to increase interest rates.

Moreover, Krüger suggested that the peak for this cycle might come later than expected due to the Fed's decisions. “The timing of the Fed going back dovish could easily derail the widely held view that crypto tops around the end of Q1,” he explained. “If equities ramp up hard in March or April, what do you think crypto will do? Macro factors are more important than both seasonality and the Bitcoin four-year cycle.”