Lyn Alden predicts Bitcoin will experience a bullish trend over the next year but warns of potential Black Swan events that could lead to significant declines. She emphasises that Bitcoin’s performance is increasingly influenced by market liquidity rather than halving events. Currently, Bitcoin is trading at $85,002, showing stability over the day.
Lyn Alden, a well-regarded macroeconomist, forecasts that Bitcoin (BTC) is likely to maintain a bullish trend in the upcoming months. In a recent interview, Alden indicated that she anticipates Bitcoin will experience a significant upward trajectory over the next year or so. However, she cautions that unforeseen events, labelled as Black Swan events, could lead to sharp market declines, causing volatility in Bitcoin’s price.
Alden noted that the current fundamentals of Bitcoin appear robust, contributing to her optimistic outlook. Yet, she stresses the importance of avoiding severe market corrections—such as a 30% decline—that could disrupt this positive trend and necessitate a recovery period.
Furthermore, Alden posits that Bitcoin’s price movements are becoming increasingly influenced by market liquidity rather than the traditional halving events. The halving cycle, which occurs every four years and reduces mining rewards, has historically preceded significant price surges. She believes the market’s growing size makes these cycles less predictable.
Emphasising the complexities of liquidity in today’s economic climate, Alden points out that its dynamics are now more pertinent to understanding Bitcoin’s valuation than past halving cycles. She remains confident in the long-term bull run for Bitcoin, highlighting the evolving nature of its market.
As of the latest data, Bitcoin’s price stands at $85,002, remaining stable throughout the day, indicating a brief period of consolidation amid market speculation.
