The price of bitcoin fluctuates frequently and unpredictably. And because of this, it’s possible that the price of bitcoin will rise quickly for a little period before falling. Although Bitcoin investors may not appreciate price drops, they are a part of the larger Bitcoin volatility.
Earlier this year, the price of bitcoin took a massive drop and this comes shortly after peaking at the end of last year. BTC is currently trading around $24,000. Even though BTC has lost nearly 60% of its value since its peak, noted macro strategist Lynn Alden says that he still has a lofty long-term outlook for the cryptocurrency. According to Alden, who spoke to market analyst Alessio Rastani, she is looking at the broader picture and recognizes the importance of bitcoin in a macro environment.
long-Term Bullish on Bitcoin
“Basically, this is the time to focus on what’s real, what’s being built, what problems are being solved, especially when you look at globally – the whole world, developing markets, especially – and seeing what are the problems with the money system? What’s happening with inflation, what’s happening with authoritarian countries or frozen bank accounts and all sorts of things like that, and what technologies can actually be useful for them?
Alden added that investors should pay attention to BTC fundamentals, as well as the premise that bitcoin appears positive from a macro perspective. He believes it comes down to controlling position size before focusing on the fundamentals, which exist despite common belief. She explained what is happening in terms of growth: one can see what is happening with the Lightning Network, with the various wallets and the ecosystem surrounding the entire space, in terms of adoption in specific developing markets. What is happening with Alden also thinks that there are several ways to analyze the market to understand what is happening in the background.