According to Lyn Alden, the cryptocurrency market has not yet reached “euphoria levels,” meaning there is not much reason to expect a major growth.
According to macroeconomist Lyn Alden, the likelihood of Bitcoin and the cryptocurrency market in general collapsing significantly at this stage is low.
“We haven’t reached the euphoria level yet in this cycle; therefore, there’s not much reason to expect a major crash,” Alden said in a recent episode of the What Bitcoin Did podcast.
“This cycle could be longer than people expect, as it is not driven by the halving event but by the broader macroeconomic situation and interest in the asset itself,” Alden said, dismissing the idea that the four-year cycle is still intact.
This sentiment is similar to comments from other crypto industry executives, such as Bitwise chief investment officer Matt Hougan, who recently dismissed the four-year cycle theory and said the market could be “in a couple of years.”
Alden said market outcomes are often not as good or as bad as people expect.
However, not everyone agrees with Alden that a major capitulation is unlikely. Vineet Budki, CEO of venture capital firm Sigma Capital, recently told Cointelegraph that he expects Bitcoin to rise. The current BTC price is $86,921 according to BingX – a 65% to 70% retracement over the next two years.
Alden said market outcomes rarely match what investors envision. “Often things are not as good as people expect, but often they are not as bad as people think, that’s just the way things are,” she said.
The event comes as Bitcoin has been in a downtrend since hitting an All-Time-High of $125,100 on October 5, falling as low as $80,700 on Thursday before recovering slightly to $85,710 at the time of publication, according to CoinMarketCap.
Market sentiment also fell as many traders expect prices to surge by the end of the year and even reach new highs, with some, like BitMEX co-founder Arthur Hayes, predicting prices to rise to $250,000.
“Nobody is owed a bull market,” Alden said.
Bitcoin's recent sharp drop in price has traders worried about when the next uptrend will begin, but Alden says investors need to stop taking the bull run as a sure thing.
“People often think they benefit from a bull market,” Alden said. “Nobody benefits from a bull market,” she said.
Alden predicts Bitcoin will reclaim $100,000 by 2026 and set a new record high that year or, if not, by 2027.
Source: Cointelegraph
