Macro guru: ‘Bitcoin price of $100,000 would not be a surprise’

Macro expert Lyn Alden says the prospects for bitcoin to reach $100,000 or more are currently good. In a new interview with Blockworks Macro, Alden says there is a “supply shock” for bitcoin.

That simply means that supply and demand are extremely out of balance, according to Lyn Alden.

Bullish for bitcoin for the next 18 months

According to Lyn Alden, the combination of the aforementioned imbalance between supply and demand and rising global liquidity is particularly bullish for bitcoin. So much so that we have a “solid setup” for a bitcoin price of 100,000 dollars or more.

“For Bitcoin, most of the indicators I track are somewhere in the middle of the cycle in terms of the bull run. I think the next 18 months still look good for bitcoin.

Again, bitcoin tracks global liquidity quite well. Furthermore, the on-chain indicators show us how many long-term holders are currently selling their bitcoin,” said Lyn Alden.

The more the bitcoin price rises, the more coins from long-term holders cautiously come onto the market. In this way, supply and demand are increasingly brought into balance, until we are heading towards a bear market for the digital currency again.

Global liquidity drives bitcoin and gold bull market

In the interview with BlockWorks Macro, Lyn Alden and Luke Gromen state that global liquidity plays an important role in the rise of the bitcoin price.

In short, global liquidity can be seen as the amount of capital in the financial system. Is the amount of capital increasing? Then it has to go somewhere and the scarcity of bitcoin and gold is of course an attractive end point.

Especially when you consider that governments’ debt positions are starting to look increasingly ugly. Due to the high interest rates charged by central banks, governments have to pay increasingly higher interest on their debts, which increases interest costs, increases budget deficits and subsequently increases debt positions again.

Investors increasingly appear to see bitcoin and gold as the answer to this negative debt spiral.