Macro analyst Lyn Alden says Bitcoin (BTC) is stuck in a period of stagnation as several forces weigh on market enthusiasm.
In a new interview on the What Bitcoin Did podcast, Alden says three main factors are behind the stall.
[adinserter block="1"]“The fact that we were $100,000 in November of last year and after a year we’re basically flat and now we’re down to some extent, that’s the more noteworthy item. I don’t really view Bitcoin as crashing. I view it as basically stagnating at this time.”
Alden says liquidity conditions are tighter this month, which removes support from risk assets.
“We do have tighter liquidity now, but when you look at broader measures of liquidity, they’re really not that bad and I don’t expect them to get that bad. I think we’re in the bottoming phase for domestic base liquidity and broader liquidity is mostly fine.”
A second drag, she says, is the surge in investor attention toward artificial intelligence (AI), which is absorbing capital that might otherwise be invested in BTC.
“It’s AI potentially sucking some kind of capital enthusiasm away from Bitcoin as the fastest horse narrative.”
She adds that gold’s strong performance this year is also competing for flows.
Alden says a third factor is the deflation of earlier expectations that nation-states would become major Bitcoin accumulators.
She points to a wave of early-year optimism in podcasts and interviews about sovereign Bitcoin reserves, which she calls misplaced.
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