Macroeconomist Lyn Alden believes that Bitcoin (BTC) exchange-traded funds (ETFs) will not have an immediate impact on the price of the crypto king.
In a new interview on the Blue Collar Bitcoin YouTube channel, Alden says that Bitcoin ETFs are unlikely to serve as a major catalyst for a bull market, but they could attract more inflows, which would send BTC to greater heights.
“[The Bitcoin ETF] doesn’t really affect my view of the stock price for the next two years, but it could make the upside even greater than if they didn’t exist.
For example, I doubt ETFs will drive the next bull market, but I think if that bull market materializes, this is another easy inflow that could make the bull market do better than if these ETFs didn’t exist. .
Money has a tendency to chase the prize in an ironic way.”
Alden also notes that Bitcoin’s next price surge will likely be driven by the same catalysts that have fueled bull markets in the past. According to the macro guru, Bitcoin ETFs will come into play when BTC records a new all-time high.
“I think the next bull market is probably going to come from the same directions as the previous bull markets, which is – we’ve come off this bear market, a lot of the fast money is coming from Bitcoin, it’s attracted to those strong hands. , people who do dollar cost averaging, people who listen to these types of podcasts and don’t really plan on selling in the near future. They are locked up.
Ultimately you get a very tight supply situation and then you get better liquidity conditions. I’ve been beating the drum for a while now that Bitcoin is highly correlated with global liquidity metrics, more so than any other asset I track…
When liquidity rises it tends to be constructive for the Bitcoin price, but that’s especially true if you’ve been in a bear market for a while and many of those loosely held coins have gravitated to the stronger hands that will only to rise. come out with a 5x raise…
When you break all-time highs, people and their RIAs (registered investment advisors) say ‘Why aren’t we in Bitcoin? The ETFs came out months ago. What are we doing?’
Then you can get part of the influx, and then I think it can contribute to that. It is certainly a constructive, positive variable, but for me it is not the most important catalyst.”
At the time of writing, Bitcoin is worth $39,972.
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