Lyn Alden Adjusts Bitcoin Price Prediction for 2025

Renowned macroeconomist Lyn Alden has revised her Bitcoin price forecast for 2025, citing the impact of recent economic events. While she still anticipates Bitcoin to close the year higher than its current value, she acknowledges that unforeseen circumstances have altered her initial projections.

In a recent interview, Alden explained that the introduction of new tariffs significantly influenced her outlook. \”Prior to these economic shifts,\” she stated, \”my price target would have been considerably higher.\” Despite this adjustment, she maintains a positive outlook, asserting, \”My prediction is that Bitcoin will conclude 2025 at a price exceeding its current level.\”

Liquidity: A Key Factor in Bitcoin’s Future

Alden emphasizes the pivotal role of liquidity in driving Bitcoin’s price trajectory. She suggests that a substantial liquidity event could serve as a catalyst for Bitcoin (BTC) to reach previously anticipated price levels, possibly even surpassing them. This scenario, she explains, could arise from a potential crisis in the US bond market, prompting intervention from the Federal Reserve through quantitative easing or yield curve control.

While expressing confidence in Bitcoin’s ability to reclaim the $100,000 mark before year’s end, Alden acknowledges the persistent challenge of Bitcoin’s 24/7 trading environment, exacerbating volatility, especially during periods of uncertainty in traditional markets.

She highlighted that continuous trading allows investors to react instantly to news and anxieties, leading to price fluctuations, particularly when traditional finance markets are experiencing turbulence. \”The 24/7 trading dynamic can amplify volatility,\” she explained, \”with investors reacting to global events around the clock.\”

At the time of writing, Bitcoin is trading at approximately $84,868 (according to CoinMarketCap).

Alden also noted Bitcoin’s capacity to decouple from the Nasdaq 100, particularly in situations where Nasdaq margins are negatively impacted without affecting global liquidity. She further suggested that a period mirroring the five years preceding the 2008 financial crisis could present a favorable environment for Bitcoin’s performance. Drawing parallels to the 2003-2007 period, she noted the weaker US dollar and capital flow into emerging markets, commodities, and gold, making a case for potential Bitcoin gains even in a less robust US stock market environment.

\”Should we experience a similar five-year period, Bitcoin could potentially thrive, even amidst underperformance in the US stock market.\”

In a previous research report, Alden highlighted Bitcoin’s strong correlation with global M2, emphasizing its role as a global liquidity barometer. The study compared Bitcoin to other major assets, demonstrating Bitcoin’s high correlation to global liquidity.

This analysis reinforces Alden’s perspective on the significance of global liquidity as a driver of Bitcoin’s price movements, suggesting that substantial changes in liquidity could significantly impact its future price.