Good day everyone,
I hope you are all well and had an excellent week, welcome to CryptoGod-1’s blog on all things crypto. In this post I will be looking at the recent comments of Lyn Alden, a crypto veteran who expects a $200,000 Bitcoin Price during the upcoming bull-run.
$200,000 Bitcoin Price
The well-known macro expert and crypto veteran Lyn Alden has recent noted how she believes that a peak of $100,000 for Bitcoin during the forthcoming bull market would be a rather underwhelming outcome for the ongoing bullish cycle. This was noted in a recent interview on the What Bitcoin Did podcast, where Lyn Alden shared her thoughts on Bitcoin’s future price trajectory.
She went on to emphasise the correlation between global liquidity and Bitcoin’s cycles while also stating that the rise or fall of liquidity serves as a reliable indicator of Bitcoin’s performance. Lyn was quick to note that while global liquidity serves as a directional indicator for Bitcoin’s price trends, it does not offer a clear indication of how high or low Bitcoin’s price could go or even specific target prices.
Alden went on to suggest that traditional models like stock-to-flow, which provide specific price predictions at certain dates, may not be as applicable to Bitcoin’s nature. Her comments have put the spotlight on liquidity metrics as less predictive models, while highlighting that the task of estimating the magnitude of price movements is much more challenging than that.
“Bitcoin is highly correlated with liquidity in terms of direction, but there’s very little way to judge a price from it. It’s not really useful for magnitude, so it’s not one of those stock-to-flow models where you can say, ‘Okay, at this date it should be this price.’”
Alden went on to predict a positive outlook for liquidity in the years 2024 and 2025 which could have a benefit for risk-free assets like Bitcoin. She also believes in a scenario where Bitcoin experiences a rally and reaches a new all-time high. This is with an expectation of exceeding $100,000, or a 240% rise from its current price before the end of 2025.
“My base-case expectation is for new all-time highs, hopefully over $100,000, so hopefully six figures. But then literally that range… that range is entirely reasonable. I’d actually be hesitant to guess where that ends up. I think that something like $100,000 plus would be kind of disappointing for a bull market cycle, especially after the prior bull market cycle was on the disappointing end, too. So I’d kind of hope for $200,000 or more over the next two-plus years.”
Currently the price of Bitcoin trades at around the $42,000, so her claiming a ceiling of $100,000 would be somewhat disappointing is particularly interesting. Her optimism was given prior to the recent drop in Bitcoin's price follwoing rumours of a delay to a spot-based exchange-traded fund (ETF). She gave her predictions at a time when Bitcoin’s value was recorded at $45,595.
Alden's views contrast with those of on-chain analytics platform CryptoQuant, who anticipates a deep corrective move for Bitcoin in anticipation of the possible approval of a spot Bitcoin ETF. Jim Cramer, of CNBC, has also recently given a bullish outlook on Bitcoin following his dismissive nature of the cryptocurrency last year.
Samson Mow, CEO of Jan3, also believes that Bitcoin has the potential to skyrocket past the $1 million in a matter of days or weeks following an approval to a spot Bitcoin ETF. He noted that a combination of limited Bitcoin supply on exchanges and a surge of institutional investment would drive the price to unprecedented levels in a remarkably short period of time.
Mow also noted how the inflow of institutional capital which is anticipated to accompany the approval of a spot Bitcoin ETF would see a torrent of money seeking to purchase the limited available Bitcoin on exchanges.
“You’re hitting a very limited supply of Bitcoin on the exchanges and available for purchase with a torrent of money. This is why you can go really high all at one time.”
Key Takeaways
There are mixed predicitons for the potential of Bitcoin over the coming years, with a bull market expected on the horizon. Many crypto experts and analysts have made bullish Bitcoin price predictions for this next major bull market, which some believe could occur in late 2024 or 2025. Here are the key takeaways from their analysis:
- Lyn Alden, a macro strategist and crypto expert, expects Bitcoin to surpass $100,000 per BTC during the next bull run, which she views as a conservative outlook. She is expecting more along the levels of $200,000 per BTC.
- While liquidity does not allow for precise price predictions, Alden argues that Bitcoin’s price movement correlates closely with global liquidity conditions. She notes that models like stock-to-flow are imperfect for forecasting Bitcoin’s price path.
- Alden anticipates that improving liquidity in 2024 and 2025 could benefit Bitcoin and other risk assets, fuelling the required rally which could lift BTC to as much as $200,000.
- Others, such as Jim Cramer have also taken a bullish view on Bitcoin following previous disregard for the cryptocurrency.
- On-chain analytics platform CryptoQuant feel a massive corrective move is required for Bitcoin and may take place with the approval of a spot Bitcoin ETF.
- Samson Mow, CEO of blockchain company Jan3 whatbitcoindid.com, expects Bitcoin to hit $1 million shortly after approval of an ETF due to high institutional demand and limited exchange supply.
Have a great day.
Peace. CryptoGod-1.
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