Macroeconomist Lyn Alden predicts that Bitcoin’s price will rise above $85,000 by the end of 2025, despite a recent tariff announcement by Donald Trump potentially limiting its growth. Alden believes a significant liquidity increase could drive prices up, particularly if the US bond Market faces challenges that require Fed intervention. She sees a chance for Bitcoin to reach the $100,000 mark this year, but acknowledges that its 24/7 trading could lead to increased volatility, especially during downturns in traditional financial markets. Alden suggests that if the Market experiences conditions similar to 2003-2007, Bitcoin could perform well even when US stocks struggle.
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Macroeconomist Lyn Alden Predicts Bitcoin Price Surge By 2025
Renowned macroeconomist Lyn Alden has shared her insights on Bitcoin’s future, predicting that the cryptocurrency could exceed its current value of around $85,000 by the end of 2025. However, she noted that this price could have been even higher if it weren’t for recent Market disruptions caused by US President Trump’s tariff announcements.
In a recent interview with Natalie Brunell on the “Coin Stories” podcast, Alden expressed optimism about Bitcoin’s trajectory. She stated, “Before all this tariff kerfuffle, I would have had a higher price target. My guess is that we end up higher at the end of the year than we are now.”
Key Factors Influencing Bitcoin’s Future
Alden emphasized that a “massive liquidity unlock” could catalyze a significant price increase for Bitcoin, potentially aligning it with pre-tariff predictions. She mentioned that the US bond Market might need intervention from the Federal Reserve, such as yield curve control or heavy quantitative easing, to stabilize economic uncertainty, which could also boost Bitcoin’s performance.
While Alden believes there’s a “good chance” Bitcoin could reclaim the $100,000 level this year, she cautioned that volatility remains a challenge for the cryptocurrency. This is primarily due to its 24/7 trading nature, which can lead to drastic price fluctuations, particularly when traditional financial markets experience instability. She noted, “If people are worried about how things are going to open on Monday, some pools of capital can sell their Bitcoin on a Sunday and prepare.”
Market Correlation and Future Potential
Alden mentioned that Bitcoin might “disconnect” from stock Market trends, especially if conditions adversely affect tech stocks without diminishing global liquidity. Drawing parallels to the five years before the 2008 financial crisis, she suggested that Bitcoin could perform well even if the US stock Market struggles. Alden highlighted the trend between 2003 and 2007 when capital flowed into emerging markets and commodities while US stocks lagged.
Notably, Alden’s research indicates that Bitcoin moves in the direction of global monetary supply 83% of the time, portraying it as a reliable “Global Liquidity Barometer.” She believes that if economic conditions mirror that earlier period, it could be a favorable time for Bitcoin, allowing investors to seek refuge from subpar stock Market performance.
Currently, Bitcoin is trading at $84,950 according to CoinMarketCap data, and many are looking to Alden’s insights as a beacon for investment strategies in the ever-evolving crypto Market.
Tags: Bitcoin, Lyn Alden, cryptocurrency trends, economic predictions, financial markets, global liquidity.
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What happened with Lyn Alden’s Bitcoin forecast?
Lyn Alden recently lowered her Bitcoin forecast due to concerns about recent tariff issues affecting markets. She is now focusing on liquidity and economic conditions.
Why are tariffs important for Bitcoin?
Tariffs can influence Market stability and investor confidence. High tariffs may lead to economic uncertainty, impacting Bitcoin prices negatively.
What does “liquidity” mean in this context?
Liquidity refers to how easily assets like Bitcoin can be bought or sold in the Market. More liquidity generally helps maintain stable prices.
How does this change affect Bitcoin investors?
Investors might need to be cautious as Alden’s lower forecast suggests potential for decreased Bitcoin prices in the near future.
What should investors do now?
They should stay informed about Market trends and consider their investment strategies carefully, especially in light of economic changes and liquidity concerns.
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