Bitcoin needs just a small inflow of new demand
According to renowned macroeconomist Lyn Alden, Bitcoin only requires a marginal amount of new investment to continue its price growth. She believes that such a catalyst could come from the overheated artificial intelligence (AI) stocks market.
Alden argues that the AI stocks sector is in a state of a price bubble. When investors start to take profits in this market, the freed-up capital could flow into Bitcoin, triggering a new bull run for the cryptocurrency.
Context for Russian readers
The Russian market has also seen a surge in demand for tech and AI-related stocks. Both retail and institutional investors are actively pouring money into such securities, anticipating outsized returns.
However, as Lyn Alden rightly points out, these markets are prone to the formation of price bubbles. When such bubbles burst, the freed-up capital could be redirected towards more stable assets like Bitcoin.
Expert opinion
Overall, Lyn Alden's idea seems quite plausible. If a price bubble indeed forms in the AI stocks market, its collapse could become a trigger for a new Bitcoin bull rally. However, it's important to remember that the cryptocurrency market itself remains highly volatile, and investors should approach it with caution.