Macro strategist Lyn Alden stated that the leading cryptocurrency Bitcoin is not in an uptrend, especially in 2022. He warned investors that BTC is still susceptible to a capitulation event.
Lyn Alden Warns Bitcoin Investors
Macro strategist Lyn Alden made statements about Bitcoin in a new interview with Stansberry Research. Alden said he looked at the Purchasing Managers Index (PMI) to determine the overall trend in the leading cryptocurrency Bitcoin.
PMI is known as an economic indicator that aims to show the health of the manufacturing and service sectors.
Alden made the following statements in his statement by addressing the PIM data;
“Bitcoin’s biggest bull has been advancing historically. There are only as many sample sizes as four of these: 2011, 2013, 2017 and 2020. These have occurred in rising PMI environments. Overall, the current era type has historically not been big for Bitcoin’s price action…
Currently, Bitcoin is classified as a risk asset by most capital pools due to its volatility, so I don’t expect it to be particularly bullish for the 2022 calendar year.”
The United States’ PMI currently stands at 58, a 9.38 percent drop from 64 in March 2021.
PMI Acts as a Catalyst
On the other hand, strategist Lyn Alden also emphasized that a falling PMI amid a tightening monetary environment could act as a catalyst for a capitulation event.
Lyn Alden made the following statements in her statements;
“We’re experiencing some kind of market turmoil, you may have a capitulation similar to March 2020 or the fourth quarter of 2018, where the Fed is still trying to tighten into a falling PMI environment.
If you get such a capitulation, I would consider it a buying opportunity. I don’t know if we can get this. We can definitely see a break below $30,000 in this kind of capitulation environment.”
On the other hand, Alden underlined that despite the downward trend in the crypto money market, it is still in an upward trend in the long-term crypto asset measure and said;
“Let’s say when I look at a time frame of three to five years, when I look at the ecosystem, I still see structural bullishness in Bitcoin, I look at what’s going on with the Lightning Network. In each cycle, infrastructure is built to absorb new types of capital.
At that time, there were exchanges that had problems with bank access. Then came more regulated exchanges, followed by more institutional-level protectors and larger pools of capital. I think that trend is still intact.”