macro analyst Lynn Aldenbelieves that a new economic variable will make it even more difficult to predict the price of Bitcoin (BTC) over the next six months.
In a new interview with Kitco News, Alden thinks that the near-term outlook of the leading crypto asset is in an uncertain position due to both high inflation and high unemployment rates. According to Alden, an economic phenomenon in which such conditions exist can create a stagnant market environment.
“Bitcoin (BTC) looks pretty uncertain for the next six months. This is because if you look at historically rising and falling PMI (Purchasing Managers Index) environments, you can see that Bitcoin’s bull activity emerged amid rising PMI environments. The positive liquidity experienced increases the tendency towards risky assets. Bitcoin actually ran into big problems as the PMI decreased. What is different is that Bitcoin has never faced such a stagnant environment in such a large market before. This is a completely new variant.”
Despite the uncertainty, the macro analyst still thinks Bitcoin is a better investment compared to other assets.
“I definitely prefer Bitcoin to some of the companies that have tons of supply chain exposure, margin pressure, stuff like that. We’ll see if it starts trading like a commodity. ”
Alden also thinks that Bitcoin will remain quite strong due to its strong fundamentals.
“My outlook for Bitcoin for the next six months is essentially neutral. I expected volatility. In the longer term plan, so basically I think everything is still great.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.