Renowned macro analyst Lyn Alden sees Bitcoin (CRYPTO: BTC) as a standout asset against the background of global currency debasement but cautions against expectations of imminent price surges.

What Happened: In a wide-ranging interview, Alden discussed recent market volatility, fiscal and monetary policy and Bitcoin's long-term prospects. She echoed the sentiment of Raoul Pal, who also recently termed Bitcoin a "standout asset" thanks to its 150% yearly average gains.

The analyst also noted that the recent market meltdown and quick recovery highlighted the "fragility" of the financial system and investors' reliance on central bank intervention.

Regarding Bitcoin's price action, Alden stated that its strongest correlation is with global liquidity, which has been flat for about two years. This accounts for Bitcoin's recent sideways trading, despite the launch of spot ETFs.

However, she remains "fairly constructive" on Bitcoin's outlook for 2025, anticipating a more pro-liquidity environment as the Federal Reserve potentially eases monetary policy.

Also Read: Bitcoin's Last Downturn Put Sentiment On 'Suicide Watch,' But Experts See A Silver Lining

Why It Matters: Alden emphasized the importance of Bitcoin's growing technological capabilities, particularly in privacy and efficiency. She highlighted the launch of several eCash wallets and improvements in payment discovery through platforms like Nostr, stating these developments are "cool to see" and empower diverse communities globally.

On the political front, Alden noted growing bipartisan support for Bitcoin in the U.S., which she sees as crucial for protecting against potential hostile government actions. She expressed neutrality on proposals for a national Bitcoin strategic reserve but acknowledged it could send a "very positive signal" to other countries.

Looking ahead, Alden expects continued fiscal dominance and currency debasement in developed economies, potentially leading to "emerging market-like characteristics" in their monetary policies. In this environment, she views Bitcoin as one of the few assets likely to outperform currency debasement over time.

What's Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.

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