Bitcoin has been making waves in the financial world, with its price soaring to new heights in recent years. The cryptocurrency has gained the attention of investors, institutions, and even governments. While price predictions for Bitcoin vary, one analyst, Lyn Alden, is optimistic about its future. In a recent interview, she stated that she hopes to see Bitcoin reach $200,000 per coin within the next two years.
Alden believes Bitcoin’s future price destination is challenging to forecast due to its role in the current macroeconomic environment. Bitcoin is still closely correlated to liquidity, which Alden expects to trend upward between 2024 and 2025. However, she acknowledges that there may be turbulence factors in 2024 that could affect this prediction. Despite the uncertainty, Alden’s conviction lies more in the two-year period than the immediate future.
Bitcoin has a pattern of major upswings every four years, followed by corrections in the following year. This pattern has been observed since 2013, and various theories attempt to explain its origins. One prevailing theory suggests that these cycles are influenced by macroeconomic tailwinds created by central bank policies. For instance, the Federal Reserve’s decision to lower its benchmark interest rates to 0.25% in 2020 may have contributed to Bitcoin’s surge from $3,500 to $64,000 between March 2020 and April 2021.
Based on current market predictions, the Federal Reserve is expected to lower interest rates again in 2024. This positioning sets the stage for a potential bull market across all asset classes, including cryptocurrencies, in 2025. Should this scenario unfold, Bitcoin could experience another significant price increase.
While it is evident that Bitcoin’s price is correlated to liquidity, deriving a specific price prediction from this correlation remains challenging. Various factors come into play, and the range of potential outcomes is vast. Analysts have proposed price targets ranging from $150,000 to $500,000, all of which Alden deems reasonable. The likelihood of ETF approvals, capital inflows, nation-state shocks, and short-term negative liquidity periods all impact the cryptocurrency’s future value. With such a wide array of variables, accurately predicting Bitcoin’s price becomes a daunting task.
On Wednesday, Bitcoin’s price experienced a minor setback, dropping from $45,000 to $40,800. This decline was primarily attributed to a Matrixport article that cast doubt on the approval of a Bitcoin ETF in the following week. However, former NYSE President Tom Farley remains optimistic, predicting a flood of capital into Bitcoin once ETFs are approved.
Bitcoin’s future remains uncertain, but analysts like Lyn Alden believe in its potential for massive growth. As the cryptocurrency continues to gain mainstream acceptance and its correlation with liquidity becomes more evident, the possibility of reaching new price milestones becomes increasingly likely. While specific price predictions may be challenging to determine, the enthusiasm surrounding Bitcoin’s future prospects continues to fuel its market momentum. As investors and enthusiasts ride the wave of excitement, only time will tell if Bitcoin reaches the coveted $200,000 price target within the next two years.