Macro expert Lyn Alden predicts a potential surge in Bitcoin (BTC) value, possibly reaching $100,000 or higher. According to Alden, the current supply shock, with long-term holders reluctant to sell, combined with increasing global liquidity, creates an advantageous environment for BTC's ascent towards six-figure prices in the coming months.
Bitcoin Poised for Six-Figure Surge as Supply Crunch and Global Liquidity Surge Converge
Cryptocurrency expert Lyn Alden has issued a compelling case for Bitcoin (BTC) to soar to unprecedented heights, potentially breaching the coveted $100,000 mark or beyond. In a comprehensive interview with Blockworks Macro, Alden meticulously analyzed key market dynamics that point to a highly favorable trajectory for the world's leading digital asset.
Alden's primary argument hinges on a pronounced supply squeeze in the Bitcoin market. Long-term holders, the backbone of Bitcoin's scarcity, are exhibiting a remarkable unwillingness to part with their holdings at current prices. This unwavering conviction has severely constrained the supply of available BTC, creating a significant imbalance in the face of surging demand.
Compounding this supply deficit is the relentless rise in global liquidity, which has been fueled by expansionary monetary policies implemented by central banks worldwide. This tidal wave of liquidity has inflated asset prices across the board, and Bitcoin, as a liquid and highly sought-after asset, stands to benefit immensely from this tailwind.
"For Bitcoin, most indicators that I track point to being fairly mid-cycle in terms of the bull run," explained Alden. "I still think the next 18 months look favorable for the asset. Again, it tracks global liquidity pretty well."
Alden further emphasized the importance of on-chain indicators that provide insights into the behavior of long-term Bitcoin holders. Historically, when Bitcoin prices experience sharp increases over short periods, a portion of these long-held coins tend to be sold to meet the new demand. However, in this current market cycle, the volume of such selling has been notably lower than in previous bull runs.
"We've seen some of that but so far we've seen less of that in this cycle than in prior cycles," said Alden. "My expectation is there's room to run both from the liquidity side being fairly constructive. That should help demand. And I still think there has to be a higher price to unlock some of these older coins to meet that demand."
Based on these compelling observations, Alden firmly believes that Bitcoin has ample room to appreciate over the next 18 months, with a strong likelihood of breaching the six-figure mark. The unique confluence of constrained supply and rising global liquidity has created a potent recipe for a significant price rally, making Bitcoin a highly enticing investment opportunity for those seeking exceptional returns.
