Prominent macroeconomic strategist and financial commentator Lyn Alden has evaluated the recent significant downturn in the Bitcoin market. He believes that the most challenging phase for investors has likely passed, suggesting that Bitcoin is currently undervalued.
Alden outlines several key factors contributing to the ongoing decline over the last four months. He observes that retail investor interest remains subdued during this cycle, with most demand being driven by institutional sources such as ETFs and corporate reserves. Additionally, he points out that Bitcoin’s price movements have mirrored those of software-as-a-service (SaaS) companies, which have faced sell-offs due to developments in artificial intelligence (AI), unfairly categorizing Bitcoin alongside them.
While halving events no longer exert as significant an influence on supply dynamics as they once did, Alden notes that psychological pressures lead investors to concentrate on these cycles and often prompt premature selling.
The analyst forecasts that a drastic drop of 85-90% for Bitcoin is unlikely. He highlights that current weekly RSI (Relative Strength Index) levels are among historically low figures, signaling an oversold condition for the asset.
Alden expresses a positive outlook by stating, “We’re much closer to reaching a bottom than we are to hitting a peak; I believe we’ve moved past the worst of selling pressure.” He describes gold and silver’s recent appreciation as “discovering their value,” while observing that gold may be slightly overvalued at present compared to Bitcoin’s unjust negative perception. Alden concluded with his preference: “If I had to pick between Bitcoin and gold for investment over the next two or three years, my choice would be clear—Bitcoin.”
*This should not be construed as investment advice.