Lyn Alden: Fed to begin gradual ’money printing’, favour scarce assets
Economist and Bitcoin supporter Lyn Alden says the US Federal Reserve is likely to begin a gradual expansion of its balance sheet — a slow form of money printing — rather than a sudden large-scale liquidity injection. In her February 8 newsletter she forecasts the Fed’s balance sheet will grow roughly in line with total bank assets or nominal GDP, providing steady liquidity that can support higher asset prices without triggering sharp inflation. Alden advises holding high-quality, scarce store-of-value assets such as gold and Bitcoin, and rotating away from crowded, overheated trades into underowned sectors. The commentary arrives amid uncertainty over Fed policy and leadership after President Trump nominated Kevin Warsh as a potential Fed chair; rate-cut odds have fallen (CME FedWatch shows ~19.9% for a March cut), reducing near-term easing expectations. For crypto traders, the outlook implies continued liquidity support that could underpin Bitcoin (BTC) and other risk assets, but with slower, uneven upside and greater sensitivity to policy signals, Fed leadership developments, whale flows and macro data. Monitor BTC futures, on-chain whale activity and key technical levels (support near $65.8k and $60k; resistance near $72.1k and $79.1k) for short-term trade decisions. This is not investment advice.
Bullish
Alden’s forecast of a gradual Fed balance-sheet expansion implies ongoing liquidity support for risk assets, which is generally positive for Bitcoin price direction. The slower, steady nature of the expansion suggests the upside may be moderate and uneven rather than a sharp speculative blow-off — supporting a bullish but cautious view. Near-term price action may be volatile and sensitive to Fed leadership updates (eg. Kevin Warsh nomination), macro surprises, and large on-chain flows (whale deposits). Traders should expect liquidity to provide an underlying bid for BTC, while monitoring technical resistance (~$72k–$79k) and support (~$65.8k and $60k) and positions in futures and derivatives markets for short-term signals.