Economist Lyn Alden believes that traditional financial institutions are starting to recognize that Bitcoin does not fit the typical pattern of a traditional market bubble.
During an interview on Peter McCormack‘s podcast ‘What Bitcoin Did,’ macroeconomics expert Lyn Alden highlighted the price performance of Bitcoin over the last 15 years, emphasizing a generally upward market trend that could presumably continue in the coming years.
The price fluctuations of Bitcoin, characterized by successive higher highs interspersed with significant contractions of 75% or more, represent a pattern that few other financial assets have displayed in their history. If Bitcoin were to follow this trend to reach a new peak, it would be following such a pattern for the fourth time.
“My base-case expectation is for new all-time highs, hopefully over $100,000, so hopefully six figures. But then literally that range… that range is entirely reasonable. I’d actually be hesitant to guess where that ends up.
I think that something like $100,000 plus would be kind of disappointing for a bull market cycle, especially after the prior bull market cycle was on the disappointing end, too.
So I’d kind of hope for $200,000 or more over the next two-plus years.”
Perception of financial institutions
According to Lyn Alden, when traditional financial institutions take a closer look at the historical evolution of Bitcoin, which continues to set new highs and higher lows, they may start to understand that Bitcoin does not follow the classic pattern of a traditional market bubble but behaves as a continuously growing asset in the long term.
Alden highlights how the comparison between Bitcoin and the famous tulip bubble of the 17th century is inappropriate. Unlike the price of tulips, which experienced a peak followed by a collapse within a timeframe of just three years, Bitcoin has shown remarkable resilience, rebounding numerous times over a period of more than 15 years.
