Bitcoin continues to fluctuate below $35 and $40k. This week, we saw prices soar, contrary to expectations, as the Central Bank of Russia requested a full-blown ban on cryptocurrencies. On the US side, the White House has announced that it will play a central role in regulating cryptocurrencies. However, as the cryptocurrency market continues its sideways trend, macro investment strategist Lyn Alden said he would be surprised if the price of Bitcoin (BTC) drops below $20,000. Analyst’s shares Cryptocoin. We have compiled it for com readers.
Lyn Alden: I still see it as an option
In a new interview, Lyn Alden says that as the market matures, Bitcoin is less likely to have extreme price fluctuations:
I was a little surprised to see pressure below $20,000. Still, I see this as an option. One way I would describe it is that Bitcoin has experienced 85% dips in the past but not bursts. Most of the indicators showed they didn’t reach the same level of enthusiasm this cycle, so you’re basically measuring from a less extreme peak. Basically I think the market is more mature so I would be a little surprised if I saw $20,000.
Analyst thinks Bitcoin crash is still possible
Despite his optimism, Alden says that under certain conditions, a Bitcoin (BTC) collapse is still possible:
The crash would be the Fed tightening, or at least talking about tightening… I think if you have a liquidity problem, if your credit markets are freezing, if you’re having some kind of big event like this, I can see a very illiquid Bitcoin spike. I guess if we don’t prevent that, I might be a little surprised to see a sustainable level below $20,000.
- Alden’s comment comes after Bitcoin slumped below $34,000, or half the ATH level, this week. At the time of writing, Bitcoin is trading at $36,454 for comparison.
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