- Macro strategist Lyn Alden suggests Bitcoin‘s next major rally may depend on capital rotating out of overvalued AI stocks.
- Bitcoin is seen as “competing for capital” with the surging AI investment theme, according to market observers.
- Alden believes a sustained price recovery for Bitcoin will likely be a slow “grind,” not a rapid V-shaped bounce.
- Long-term Bitcoin holders are putting a price “floor” in place as they refuse to sell for less than substantial gains.
- Analysts question if NVIDIA‘s growth can continue to justify its stock price, which is up over 35% in a year.
Macro strategist Lyn Alden posited on the Coin Stories podcast published Thursday that Bitcoin’s next major advance could be triggered by a capital rotation from excessively valued Artificial Intelligence stocks. She argued that when an asset’s price becomes hard to justify, investors seek new opportunities with greater upside potential.
Consequently, Bitcoin, currently down 46% from its $126,100 peak, could benefit from such a shift. However, Bitcoin is now directly “competing for capital” with the AI investment wave, a new dynamic noted by developer Mark Carallo. This competition centers on giants like Nvidia, which Albion Financial Group’s Jason Ware called the “most important stock in America.”
Ware recently told Fox Business he expects another strong quarter from the chipmaker but wonders if it will suffice to push the stock higher. Nvidia’s share price has risen 35.48% over the past year, according to Google Finance data.
Meanwhile, Alden emphasized that Bitcoin only needs a marginal inflow of new demand to move higher, as long-term holders create a solid price floor. She explained that coins rotate from short-term traders to strong hands who “are really not going to want to part with it unless it goes up like 5X or more.”
Bitcoin was trading at $67,849 at the time of publication, down 24.49% over the past month, according to CoinMarketCap. Alden does not anticipate a quick price surge, noting “Bitcoin rarely makes V-shape bottoms.”
She instead forecasts a prolonged period of consolidation, stating the market is currently in more of a “grind.” This phase could see the price move $10,000 to $20,000 lower before establishing a durable base for its next cycle.
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