Macro guru Lyn Alden says Bitcoin (BTC) in ‘Deep Value Zone’ at current prices – but there’s a catch
Macro expert Lyn Alden says Bitcoin (BTC) is a “strong buy” at the current price, but warns traders to keep in mind that there could be volatility ahead.
In a new interview with Swan Signal, Alden says that Bitcoin’s current value gives investors what may be a rare opportunity to accumulate the royal crypt at such a price level.
However, Alden says there is a possibility that Bitcoin could fall in value later this year if federal monetary policy dries up liquidity.
“I have some concerns about the second half of the year because once they’ve resolved the debt ceiling, you’re almost certainly going to see the Treasury try to siphon liquidity back out of the market to fill up its Treasury account and if the Fed is still pulling liquidity at that point, you can have a rapid decline in liquidity. So you can have negative tests again. You can have consolidations, corrections.”
Alden says it is difficult to predict what market conditions will be like later this year along with the Federal Reserve’s monetary policy.
“But it’s unclear how that’s going to play out. It’s possible that the Fed won’t even be able to continue quantitative easing at that point. It’s possible that the Treasury will try to taper off very slowly. We don’t know exactly when or how the debt ceiling will be resolved, so much of this is a guessing game and it is hard to tell if Bitcoin rallies and then corrects from what level it rallies to, it may not correct back to where it is now, or it can.”
Taking a multi-year perspective and assessing the network’s fundamentals are important factors for investors, says the macro expert.
“Professional traders are going to try to get what they can out of it, but I think for the vast majority of people, I’d just point out that by most metrics, there’s kind of a deep value zone, based on a lot of different metrics. I think it is attractive in a three to five year perspective.
If you monitor the fundamentals of the network, if you think the network is healthy, if you think all the aspects are still working as intended, if you don’t see that there are any kind of competitors that come close to what Bitcoin offers, then I think it is a strong buy.
And I just want to caution that I think there is potentially a period of turbulence in the second half of this year when some of this debt ceiling is resolved. I think we’re still not out of the woods yet.”
Bitcoin is trading at $23,159 at the time of writing.
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