Bitcoin: “Don’t Expect a Quick Bull Run” – Lyn Alden
Lyn Alden, a respected macro expert, has issued a warning to investors about the next Bitcoin (BTC) bull run, suggesting it could be a long way off.
Alden cited the Federal Reserve’s interest rate hikes as a key reason for the downward pressure on crypto assets.
She noted that the Fed’s current hiking cycle is happening amid a decelerating economy and to tackle inflation. This dynamic is similar to what was observed in late 2018 and has been the story of 2022 so far.
According to Alden, as long as the Fed continues its current policy, Bitcoin and other similar assets could face challenges. However, she also clarified that this doesn’t necessarily mean new lows for crypto assets. While it’s possible that the lows have already been seen, she doesn’t believe another straight-up bull market is likely until there is a shift in policy or perception.
Alden further commented on how the markets are assuming that the Fed’s hawkish policies will eventually bring down inflation. However, she also noted that they may not work, which could lead to people losing faith in the Fed’s policies and turning to alternative assets.
READ MORE: Block, Inc. Aims to Revolutionize Bitcoin Mining Hardware
She believes inflation is largely driven by fiscal policy, which is largely outside the Fed’s control. In fact, she argues that the Fed’s interest rate hikes could even exacerbate public sector inflation.
In the long run, Alden believes that investors won’t be rewarded for assuming the Fed has everything under control. If inflation continues to break out, even during a recession, and people start to doubt the efficacy of rate hikes, then scarce assets may become more attractive to investors.
As of the time of writing, Bitcoin is trading around $20,400.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
