Widespread macro knowledgeable Lyn Alden believes {that a} peak of $100,000 for Bitcoin (BTC) in the course of the subsequent market enlargement could be an underwhelming end result.
In a brand new interview on the What Bitcoin Did podcast, Alden says that the rise or fall of world liquidity is a stable indicator of Bitcoin’s cycles.
Whereas Alden stresses the correlation between liquidity and BTC, she notes that the metric doesn’t provide any indication as to how excessive or low BTC’s value may go.
“Bitcoin is extremely correlated with liquidity by way of path, however there’s little or no approach to decide a value from it. It’s not likely helpful for magnitude, so it’s not a type of stock-to-flow fashions the place you may say, ‘Okay, at this date it needs to be this value.’
I believe that lots of that’s actually onerous to evaluate.”
Alden predicts {that a} “spectrum” of 2024 and 2025 shall be “optimistic for liquidity” and optimistic for risk-on property like Bitcoin. She goes on to put out a state of affairs the place Bitcoin rallies by about 340% from present costs earlier than the tip of 2025.
“My base-case expectation is for brand new all-time highs, hopefully over $100,000, so hopefully six figures. However then actually that vary… that vary is completely affordable. I’d truly be hesitant to guess the place that finally ends up.
I believe that one thing like $100,000 plus could be sort of disappointing for a bull market cycle, particularly after the prior bull market cycle was on the disappointing finish, too.
So I’d sort of hope for $200,000 or extra over the following two-plus years.”
At time of writing, Bitcoin is buying and selling for $45,595, up over 6% within the final 24 hours.
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