Highly respected equity research analyst and investment strategist Lyn Alden says that Bitcoin falling to the mid-$20,000 range would represent “super deep value” for investors.
On May 14, during an interview on the Blockware Intelligence podcast, Alden argued that Bitcoin’s recent price fall below $30,000 represents a buying opportunity for investors that are able to capitalize long-term. She argued that Bitcoin at a mid-$20,000 price point offered substantial value according to a number of metrics.
As reported by The Daily Hodl, Alden said,
I think this mid-$20,000 area is super deep value. When you look at things like dormancy flow, a bunch of different on-chain indicators are kind of deep value.”
While Alden said she was not able to pinpoint the exact price bottom for Bitcoin, she did argue that $BTC had entered a price range attractive to long-term investors. She encouraged investors to employ dollar cost averaging or layering at the current price point, saying it was “a good place to do it.”
The macro strategist warned that trying to catch the market’s bottom was “kind of a fool’s game.”
Alden did point to Tether’s struggle to remain pegged to $1 and subsequent recovery as potential indication of the market bottom. She argued that the Tether peg represents a “sign of liquidity,” and that the stablecoin’s price fell when too much liquidity was sucked out of the market.
Alden also claimed $USDT’s price recovery could indicate that “the worst is behind us,” but told her interviewer that “it’s hard to say for sure.”
On May 2, during an interview on the “What Bitcoin Did” podcast, Alden argued that Bitcoin’s greatest competition in the crypto race would come from central bank digital currencies (CBDCs).
Alden, who provides equity research and investment strategies for clients, called the digitization of money “inevitable,” and said the primary question facing the market would be which asset becomes dominant. Alden noted that Bitcoin was the most likely candidate to overcome its shortcomings and be successful in the long term, including resisting the influence of government control.
As reported by The Daily Hodl, Alden said:
“It checks off a number of boxes, and even the boxes it doesn’t check off are within sight of being able to be checked off as technology improves and as it just gets more widely held, and it becomes better. So I think longer term, I think Bitcoin… You can call it the fastest horse in the race.“
Despite calling Bitcoin the most dominant cryptoasset, Alden cautioned investors against allocating 100% of their portfolio to Bitcoin. However, she said it was “something silly” to not have Bitcoin at this point in time.
Alden also highlighted Bitcoin’s legitimate use cases as an advantages over equities:
“ think in addition to being an investment, in addition to being savings, [Bitcoin’s] also insurance. It gives you that optionality in a way that other assets don’t.“
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Disclaimer
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
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