The macro guru Lyn Alden explained recently that Bitcoin could see its bottom and perform well. Check out the latest reports below.
At the moment of writing this article, BTC is trading in the red, and the king coin is trading at $23,034.
Bitcoin could soon see its bottom
The popular crypto analyst Lyn Alden says one macroeconomic factor could signal the end of Bitcoin’s (BTC) bear market.
In a new interview with market analyst Alessio Rastani, Alden says that Bitcoin’s performance is tightly correlated with the expansion or deceleration of global money supply (M2).
It’s important to note the fact that M2 money supply roughly refers to the total amount of currency in circulation. More than that, it’s about the near money, or highly liquid non-cash assets that can be easily converted to cash.
“When global money supply measured in dollars is going up pretty rapidly, that’s a great environment for Bitcoin. When it’s going down, when basically that year-over-year rate is rolling over or even stops growing entirely, that’s usually a pretty bad environment for Bitcoin.”
She continued and said the following:
“And in that sense, what Bitcoin is hedging is not price inflation, but monetary inflation, or debasement. It’s basically one of the more pure plays on liquidity.”
She believes that that’s probably the key thing to watch.
“What’s happening with liquidity, and what’s happening with the rate of change in economic growth?” she said.
In order to learn more details about what she had to say, check out the original article posted by the online publication the Daily Hodl.
Bitcoin on Coinbase
According to the latest reports, the popular on-chain analyst Will Clemente says Bitcoin (BTC) buy orders on crypto exchange Coinbase are reminiscent of BTC’s bottom in March 2020.
To learn more details about this, head over to our previous article.