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While Bitcoin (BTC-USD) has lost nearly half of its value from the mid-November peak, Global Macro Strategist Lyn Alden, on Tuesday said there is weak demand for bitcoin, but the tight coin supply remains a bullish factor, she told MicroStrategy (NASDAQ:MSTR) CEO Michael Saylor at the MicroStrategy World Event.
Bitcoin (BTC-USD) “doesn’t necessarily hedge you the moment you get different CPI prints, the founder of Lyn Alden Investment Strategy told Saylor. “It is basically a structural way of holding something that has intrinsic scarcity, compared to something that is instrinsically not scarce for which the yields are no longer keeping up with inflation,” she added.
Moreover, Alden noted that the current environment of historically low interest rates and surging inflation can persist throughout the rest of the decade. With currency depreciation taking hold, especially with regards to the U.S. dollar – the world reserve currency – investors may gain interest on digital assets as inflation destroys the purchasing power of fiat currencies. This dynamic supports Alden’s bullish long-term prospects for bitcoin (BTC-USD). Note that bitcoin historically also tends to perform well in times of economic growth, and vice versa, Alden added.
Meanwhile, bitcoin (BTC-USD +0.8%) is consolidating to $38.8K per token after reaching as high as $39.2K earlier on Tuesday.
Recall earlier when Jack Dorsey told Saylor that the Bitcoin network’s transparency incentivizes acceptance.