Bitcoin price is trading at $85,002 ($85.0k), being flat on the day as market participants guess its near-term direction. Lyn Alden Respected macroeconomist Lyn Alden has been bullish on Bitcoin in recent months. She does urge investors to be aware of potential pitfalls.
So Alden thinks Bitcoin’s bull run is still in place and is forecasting the cryptocurrency to continue trending higher for about another year. She emphasizes that the market's liquidity now plays a more significant role in Bitcoin's performance than the halving events, which occur every four years and reduce mining rewards by half.
“I think that a lot of the fundamentals look pretty good at the current time. So I expect pretty good performance over the next year or two, but it is subject to not having like a 30% market crash or things like that that could temporarily push us lower that we’d have to then rebuild from.” - Lyn Alden
Alden is excited about Bitcoin’s potential, she warns about unpredictable consequences. A Black Swan event or a substantial market correction, such as a 30% crash, could temporarily drive Bitcoin's price down, requiring a period of recovery.
Whatever the case, Bitcoin’s price is still vulnerable to market fluctuations, driven by macroeconomic factors and investor sentiment. Alden's analysis suggests that while the halving cycle has historically impacted Bitcoin's price, its performance is increasingly tied to broader market dynamics.
Alden’s optimistic outlook is rooted in the long-term value proposition of Bitcoin. She emphasizes the need for consciousness around risk and market volatility when assessing its investment potential.
