Daily Crypto News

Macro Guru Lyn Alden Predicts Bitcoin Rally Likely To Continue in Coming Months – But

Macro expert Lyn Alden says that macroeconomic conditions hint at further Bitcoin (BTC) rallies over the next several months, but with a caveat.

In a new interview with Natalie Brunell, Alden says that Bitcoin has historically proved to be a decent play on USD liquidity, usually rising in price alongside an expansion of the money supply.

She says that recently, a slight easing of liquidity has helped set the stage for BTC’s rallies over the past several weeks. The macro expert predicts more price appreciation for the king crypto, but says that liquidity trends still weigh down on Bitcoin over the longer term.

“Historically, Bitcoin has been one of the purest liquidity plays. When you look at various measures of domestic or global liquidity, generally when liquidity is rising, it’s pretty good for Bitcoin and when liquidity is falling, Bitcoin is usually going down or sideways. Starting around the beginning of Q4 of last year, some of the liquidity indicators started to bottom and turn back up, at least temporarily. 

I think that much like other assets that rallied, I think Bitcoin would have had a rally back then if not for the whole FTX debacle. So that kind of delayed the rally but with that somewhat resolved, and now moving forward, I think Bitcoin and other assets in the ecosystem are kind of having their rally which is really a liquidity rally. Basically, liquidity indicators look okay for the next couple of months, but overall, long term they’re still not in a very good place.”

Alden says it’s possible that a similar scenario to March 2020 awaits Bitcoin at some point before the next bull market, whereby a sudden “liquidity shock” hammers BTC’s price down to retest macro lows before quickly bouncing up.

“I wouldn’t be surprised by something like that, like a sharp retest, but it’s too early to say because it partially depends on what humans do, what Jerome Powell does, what different boss-makers do. And of course, that’s always impossible to predict. But overall, historically, Bitcoin has been very correlated to macro factors, and specifically liquidity.”


Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines


Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: StableDiffusion

Read More: Macro Guru Lyn Alden Predicts Bitcoin Rally Likely To Continue in Coming Months – But

Disclaimer:The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website’s content as such. NewsOfBitcoin.com does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.