Traders Can Expect Bitcoin (BTC) Price Rally By Year-End Only If This Happens
Lyn Alden, a Macro analyst says Bitcoin trending at the lowest of $29,733 now can rally higher over coming months if it fulfills certain conditions. In response to the question raised in the Coin Stories interview Alden says, the Bitcoin price can reach its highest high if the Federal Reserve reverses its current hawkish monetary policy measures. Which includes raising interest rates and the unwinding of asset purchases.
She noted that: “I mean if you had a total capitulation like if you had a pivot in Fed policy and a reliquefaction of markets, it’s a pretty high volatility asset [Bitcoin]. So you could have a pretty big swing up. you could reset some highs.”
Lyn further describes that Bitcoin is currently performing in the short term, it could still print new lows. And he also highlights that the top crypto asset by its market cap is now trading at price levels favorable for long-term holders.
Noting: “I don’t really have a high conviction if we’re going lower or not. It’s not like Bitcoin necessarily bottoms as soon as the bottom of the economic indicator. It’s not that correlated right. So it could bottom ahead of time, it could not. I think we’re already in a kind of a value range But that doesn’t mean we can’t go lower.”
As per Lyn when the economic environment was slowing down Bitcoin has historically proven to fare poorly, stressing the 13-year-old asset Bitcoin. which doesn’t do well in economic decelerating environments.
Alden had questions such as, “Okay would that pattern hold this time or because there’s higher inflation? it’s the first time you’ve gone through a down cycle that’s inflationary in Bitcoins history.” Her response noted: “And I was like that’s a new variable so I was like you know it’s probably not going to be great for the price. But we will see. And so far, it has been pretty bad for a price obviously.”