Investment Strategist Lyn Alden: Bitcoin Unlikely To Drop Below $20K

According to Lyn Alden, a macro investment strategist, it’s very unlikely for Bitcoin (BTC) drop below $20,000.

In an interview with KITCO Insights, Alden projected that as the crypto market is maturing, Bitcoin is less likely to have drastic price volatility.

“I’d be somewhat surprised to see a sub 20,000 print. I don’t rule it out as an option though. One way I would describe it is that Bitcoin had these 85% drops in the past, but also had massive blow-off tops in the past. 

Most of the indicators showed they didn’t reach the same level of exuberance in this cycle, so basically you’re measuring it from a less extreme topping point. It had more of that rolling top than a huge spike. Basically the market, I think, is more mature so I would be somewhat surprised to see a 20,000 print.”

While Alden remains positive on the cyrpto outlook, there are scenarios where dramatic crashes are possible.

“The environment that I can imagine getting there, if I would have put on my bear hat for a second, it would basically be that the Fed’s tightening or at least talking about tightening…

I think if you have a liquidity event, if you have credit markets freeze, if you have some sort of major events like that, I could see a very illiquid Bitcoin spike down.

I think barring that, I’d be somewhat surprised to see a sub $20,000 sustained level.”

At the time of writing, Bitcoin trades at $36,786, after falling below $33,000 earlier during the week.