Lyn Alden, an equity and investment strategy analyst, said in an interview that she expects a very poor year for bitcoin (BTC) investors. In her words, she said it will be a “bumpy year for bitcoin (BTC).”
“Not particularly optimistic” for bitcoin (BTC)
Lyn Alden didn't mince words during her interview with Stansberry Research. She revealed that, unlike other analysts, she is “not particularly optimistic” about BTC this year. Why does she say it? She said she relied on the Purchasing Managers Index (PMI). It is an index of the prevailing direction of economic trends in the manufacturing and service sectors. Based on this index, it would have anticipated BTC prices .
As Daily Hodl reports, Alden said, “Bitcoin (BTC) major bull cycles have occurred in rising PMI environments, hence economic acceleration. However, the current period has historically not been great for bitcoin price action.” She added, "Right now, bitcoin is categorized, due to its volatility , as a risky asset by most capital pools, so I'm not particularly bullish on the calendar year." 2022”.
There could be a break below $30,000
According to Moody's Analytics, the US PMI is currently hovering around 57.6, representing a nearly 10% decline from March 2021. Alden believes that a decline in the PMI combined with Fed actions, which shows unsupportive of BTC expansion, could lead to a sellout event for the king of cryptocurrencies.
“If you have some kind of turbulence in the market, you could have a capitulation similar to March 2020 or similar to the fourth quarter of 2018, where the Fed was still trying to tighten in a declining PMI environment,” Lyn Alden said in his interview.
“In the past, when there was a sellout like this, I would view it as a buying opportunity. I don't know if we're going to get it or not. We could definitely see a break below $30,000 in this kind of capitulation type environment.”
Even though Alden seems pessimistic about the future of BTC, she wants to believe in a happy tomorrow. Indeed, she said that “looking over several years, I think the uptrend will resume. With each cycle, the infrastructure is built to absorb new types of capital”.
Lyn Alden, an analyst well known for his skill in scrutinizing the cryptocurrency market, announced that the price of bitcoin (BTC) is not likely to become significant during this year. She relied on the PMI to reach this conclusion.
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