Lyn Alden Predicts Bitcoin Price Boost Despite Tariff Challenges, Highlights Liquidity and Volatility Concerns
Macroeconomist Lyn Alden has adjusted her Bitcoin price prediction for the end of 2025 from an earlier optimistic view due to recent U.S. tariff policies introduced by former President Trump in February. While optimistic that Bitcoin could reach $100,000, Alden acknowledges that recent tariffs could restrain its price potential. She emphasizes the impact of liquidity injections, such as Federal Reserve interventions, which could bolster Bitcoin prices similarly to pre-tariff scenarios. Alden also notes Bitcoin’s increased volatility due to its 24/7 trading nature, particularly during market turbulence, but remains hopeful that a weak U.S. dollar could support Bitcoin’s strength. Her views echo past economic conditions from 2003-2007, where capital flowed into commodities and emerging markets amid a weak dollar cycle. Other analysts provide varied opinions, with some suggesting further consolidation phases for Bitcoin or even higher price potential benefiting from current U.S. trade policies.
Bullish
The news highlights a potentially bullish outlook for Bitcoin by year-end 2025, supported by optimism around liquidity boosts and weak dollar cycles enhancing its value. Despite concerns over tariffs restricting potential gains and Bitcoin’s inherent volatility, the predictions suggest a favorable outcome from liquidity interventions, akin to pre-tariff expectations. Historical parallels with previous weak dollar periods where capital favored commodities and emerging markets further underscore this. In crypto markets, such conditions may indeed drive capital towards Bitcoin, suggesting a bullish trajectory.