Macro guru Lyn Alden predicts the Bitcoin rally will likely continue in the coming months, but there’s a big problem

[ad_1]

Macro expert Lyn Alden says macro conditions point to further rallies in Bitcoin (BTC) over the coming months, but with a caveat.

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

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

“Bitcoin has historically been one of the purest liquidity games. When you look at various metrics of domestic or global liquidity, usually when liquidity goes up, that’s pretty good for Bitcoin and when liquidity goes down, the Bitcoin generally declines or sideways.From the beginning of the fourth quarter of last year, some of the liquidity indicators started to bottom out and move up, at least temporarily.

I think just 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 kind of have their rally which is really a rally of liquidity. Basically, the liquidity indicators look okay for the next two months, but overall, long-term, they’re still not very well placed.

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

“I wouldn’t be surprised by something like this, like a sharp new test, but it’s too early to tell because it depends partly on what humans do, what Jerome Powell does, what humans do. different bosses. And of course, it’s always impossible to predict. But overall, historically, Bitcoin has been highly correlated to macroeconomic factors, and liquidity in particular.

I

Don’t miss a beat Subscribe to receive crypto email alerts straight to your inbox Check price action Follow us on Twitter, Facebook and Telegram Surf The Daily Hodl Mix Check the latest headlines Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk and any loss you may incur is your responsibility. The Daily Hodl does not recommend the buying or selling of cryptocurrencies or digital assets, nor is The Daily Hodl an investment adviser. Please note that The Daily Hodl engages in affiliate marketing.

Generated Image: StableDiffusion

[ad_2]