Lyn Alden Predicts Bumpy Road Ahead For Bitcoin
Lyn Alden, a well-known macro expert, is warning investors that the next bull run for Bitcoin (BTC) may not be happening anytime soon. In a recent strategy session with crypto analyst Benjamin Cowen, Alden explained that the Federal Reserve’s interest rate hikes are likely to exert downward pressure on crypto assets.
Alden pointed out that the Fed is hiking interest rates into a decelerating economy, which could have a negative impact on Bitcoin and similar assets. She likened the current situation to late 2018, which was a challenging time for Bitcoin. Alden does not believe that Bitcoin will necessarily reach new lows, but she does not expect a straightforward bull market either unless there is a shift in policy or perception.
The macro expert also highlighted that the markets assume the Fed’s hawkish policies will succeed in bringing down inflation, but it is possible that they don’t work. If the policies fail, it could lead people to lose faith in the Fed and invest in alternative assets. Alden believes that inflation is largely fiscal-driven and outside of the Fed’s control. Interest rate hikes could even exacerbate public sector inflation, which is a concerning trend.
Alden suggests that if inflation continues to rise, and interest rate hikes fail to control it, people may start shifting towards scarcer assets. This shift could happen when the market realizes that more rate hikes are not the solution to the inflation problem.
In summary, Lyn Alden’s warning to investors is that a straightforward Bitcoin bull market is unlikely anytime soon, due to the Federal Reserve’s interest rate hikes and the fiscal-driven nature of inflation.