The future of global liquidity and its potential impact on bitcoin was the central topic discussed in a recent conversation with investor Lyn Alden.
Austin Arnold, Co-Host of Altcoin Daily, spoke with Alden to gain insight into how monetary policies and economic shifts could shape bitcoin’s performance over the next 18 months.
Alden noted, “We are generally seeing, as the Fed starts to cut interest rates, a softer dollar.” She explained that while the U.S. dollar benefits from being the global reserve currency, “whenever we ease monetary policy, that tends to be pretty dovish for the dollar.” Alden predicted a weaker dollar and a return to global credit creation, forecasting, “we’re entering another upward liquidity cycle after really two plus years of being range bound in liquidity.”
On bitcoin’s prospects, Alden expressed optimism, citing its connection to liquidity cycles. “Bitcoin has followed this liquidity cycle pretty closely, and my base case over the next 18 months is probably for both liquidity and bitcoin to go up,” she said. However, she admitted that short-term predictions are difficult, stating, “I don’t really have a view of say the next three to six months.”
When Arnold asked about her base, bear, and bull cases for bitcoin, Alden remarked, “I’d be surprised if we don’t see a $100,000,” while cautioning that external factors such as institutional buy-ins or sovereign announcements could heavily influence price movements.
Alden concluded by emphasizing the importance of focusing on long-term trends over specific price targets. She highlighted how decisions from major institutions or nation states could have a significant impact on bitcoin’s price trajectory in the coming years.
