Lyn Alden, a macroeconomics expert and writer, has suggested that traditional financial institutions are beginning to recognize that Bitcoin (BTC) is not in a classic bubble. Alden has analyzed Bitcoin’s price movements over the last 15 years and shared her insights in a recent interview with Peter McCormack.
Alden pointed out Bitcoin’s general upward trend, noting a recurring cycle where BTC has rebounded to new highs after significant drops, sometimes over 90%. She mentioned that very few stocks have shown this pattern, and none more than three times. If Bitcoin reaches another peak, it would be the fourth instance of this pattern.
Alden argues that most people have only witnessed Bitcoin’s history when it became significant enough to notice, such as the 2017 surge and crash followed by the 2021 rise and fall. This limited view leads many to perceive Bitcoin as having gone through a bubble, a warning bubble, and then a demise.
However, Alden contends that when institutions pay attention to Bitcoin’s history of recording higher lows, they begin to understand it as an asset in a long-term uptrend rather than a market bubble. She emphasizes the importance of the number of times Bitcoin has rebounded to higher levels, not just the frequency of its cycles.
The expert believes that Bitcoin is becoming increasingly normalized among institutions, and discussing it is becoming less outlandish. She contrasts Bitcoin’s multi-year pattern of higher highs and lows with the brief tulip mania chart, which only shows a single dramatic rise and fall over three years.
Alden concludes that as more people recognize the pattern of Bitcoin’s growth and resilience, the perception of it as a traditional bubble diminishes, further normalizing the cryptocurrency in the eyes of the traditional financial world.