Macro guru Lyn Alden says institutions are now realizing that Bitcoin (BTC) is not in a bubble – here's why
Macroeconomics expert and author Lyn Alden says traditional financial institutions are beginning to believe that Bitcoin (BTC) is not in a classic bubble.
In a new interview with Peter McCormack on the What Bitcoin Did podcast, Alden says that the price of Bitcoin over the last 15 years indicates an overall upward trend in the market that is likely to continue.
“You see this recurring cycle, three times. Three times it made a higher high after a decline of 75% or more, sometimes even above 90%. And there are a handful of stocks that have done that, but I haven't found any stocks that have done it more than three times. So if Bitcoin hits another higher high, it would be like it's the fourth time.
However, we must remember that most people have not seen this chart yet. And instead, most people only see the ones that happened when Bitcoin was big enough to be aware of. So, for example, they saw the rise in 2017 and then the crash, and then they saw the rise in 2021 and the crash, the higher high, the higher low. So you saw two. So you think, OK, there was a bubble, and then there was an economic bubble, and then it died. That's how a lot of people saw it.”
Alden says once institutions pay attention to BTC's long history of printing higher highs and higher lows, they begin to understand that Bitcoin functions not as a typical market bubble, but as an asset in a long-term uptrend.
“While those of us who are more in the room say: No, no, this is still going well under the surface. When they see a third higher high and perhaps a third lower low, it becomes impossible to ignore. Because it doesn't just matter how many times Bitcoin has done it, but also how many times they have experienced it. And so it's completely on their radar whether they've seen this logarithmic chart or not.
And I think that's where Bitcoin becomes more and more normalized among institutions and it becomes less crazy to talk about because it's this asset that doesn't have the characteristics of a traditional bubble. People still call it tulips [a 17th-century market bubble related to the price of the flower bulb], but if you look at the tulip chart, it's like this three-year chart with just this crazy rise and a crash. It hasn't risen higher and higher several times over the course of more than 15 years. And once people see this happening more and more, it will become normal.”
Bitcoin is trading at $42,742 at the time of writing, up slightly in the last 24 hours.
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