Macro expert Lyn Alden says that Bitcoin (BTC) is a “strong buy” at its current price but warns traders to keep in mind there may be volatility ahead.
In a new interview with Swan Signal, Alden says that Bitcoin’s current value gives investors what may be a rare opportunity to accumulate the king crypto at such a price level.
However, Alden says there is a possibility Bitcoin may dip in value later this year if federal monetary policies dry up liquidity.
“I do have some concerns around the second half of the year because once they resolve the debt ceiling, you’re going to see the Treasury almost certainly try to suck back liquidity out of the market to fill back up its Treasury account and if the Fed is still withdrawing liquidity at that time, you can have a rapid decrease in liquidity. So you could get negative retests. You could get consolidations, corrections.”
Alden says it’s hard to predict what the market conditions will be later this year along with the Federal Reserve’s monetary policies.
“But it’s unclear how it’s going to play out. It’s possible that the Fed will not even be able to still be quantitative tightening at that time. It’s possible that the Treasury will try to draw up very slowly. We don’t know exactly when or how the debt ceiling is going to be resolved. So a lot of this is a guessing game and it’s hard to say if Bitcoin rallies and then corrects from whatever level it rallied to, it might not correct back down to where it is now, or it could.”
Taking a multi-year perspective and considering the network’s fundamentals are important factors for investors, says the macro expert.
“Professional traders are going to try to get what they can out of it, but I think for the vast majority of people, I would just point to that it’s by most metrics it’s kind of a deep value zone, based on a lot of different metrics. I think it is attractive in a three to five-year perspective.
If you monitor the fundamentals of the network, if you think the network’s healthy, if you think all the aspects are still working as intended, if you don’t see that there are any sort of competitors that are anywhere near close to what Bitcoin offers, then I think it is a strong buy.
And I would just caution that I do think that there is potentially a period of turbulence in the second half of this year once some of this debt ceiling stuff is resolved. I think we still are not out of the woods yet there.”
Bitcoin is trading for $23,159 at time of writing.
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