Analyst Lyn Alden Gives Insights on When Potentially Bitcoin ETF Could Rise

The price of the most popular cryptocurrency may be impacted by Bitcoin exchange-traded funds (ETFs), according to macroeconomist Lyn Alden’s observations. Even if ETFs might not be the main driver of the next bull market, Alden believes they could strengthen the upward momentum by drawing in more capital.

Alden voiced doubts that Bitcoin ETFs will be the catalyst for the upcoming bull market in an interview on the Blue Collar Bitcoin YouTube channel. She did, however, agree that if the bullish trend materializes, they may contribute to it.

Alden stressed that although exchange-traded funds (ETFs) would not start the bull market, they might enable more consistent inflows, which would improve the performance of the market as a whole. The economist pointed out that money has a propensity to follow price, and he hypothesized that the availability of ETFs may draw capital during a bull market period, enhancing the size of market gains.

Bitcoin’s Bullish Catalysts and Liquidity Conditions

Alden outlined her viewpoint on the elements that she believes will lead to the next surge in the price of Bitcoin. She recognized well-known triggers from previous bull markets, such as a flight of quick money from Bitcoin, which would bolster the position of long-term holders who were averaging their costs.

Alden claims that as global liquidity indicators have a significant impact on Bitcoin’s price movements, liquidity circumstances are an important consideration. The economist clarified that as loosely held coins tend to move toward stronger hands, increased liquidity often has a beneficial effect on Bitcoin values, particularly following an extended bad market.

The macro expert stressed that when Bitcoin hits a new all-time high, Bitcoin ETFs may be relevant. According to historical patterns, Alden expected that constrained supply and improved liquidity conditions would be the catalysts for the next bull market.

Breaking all-time highs, according to Alden, would encourage investors and registered investment advisors (RIAs) to take a look at Bitcoin, perhaps resulting in inflows. Although she acknowledged that ETFs are a useful tool, she came to the conclusion that they won’t be the main driver of the next big market shift.