{"id":543406,"date":"2023-01-25T13:49:34","date_gmt":"2023-01-25T10:49:34","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoin-faces-considerable-danger-from-fed-in-2023-lyn-alden\/"},"modified":"2023-01-25T13:49:34","modified_gmt":"2023-01-25T10:49:34","slug":"bitcoin-faces-considerable-danger-from-fed-in-2023-lyn-alden","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoin-faces-considerable-danger-from-fed-in-2023-lyn-alden\/","title":{"rendered":"# Bitcoin faces &#8216;considerable danger&#8217; from Fed in 2023 \u2014 Lyn Alden"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2ee0a1664df\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2ee0a1664df\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-faces-considerable-danger-from-fed-in-2023-lyn-alden\/#%E2%80%9D_Bitcoin_faces_%E2%80%98considerable_danger_from_Fed_in_2023_%E2%80%94_Lyn_Alden_%E2%80%9C\" >&#8221; Bitcoin faces &#8216;considerable danger&#8217; from Fed in 2023 \u2014 Lyn Alden &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-faces-considerable-danger-from-fed-in-2023-lyn-alden\/#Alden_BTC_price_bottom_is_a_%E2%80%9Cprocess%E2%80%9D\" >Alden: BTC price bottom is a &#8220;process&#8221;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-faces-considerable-danger-from-fed-in-2023-lyn-alden\/#%E2%80%9CConsiderable_danger_ahead%E2%80%9D\" >&#8220;Considerable danger ahead&#8221;<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Bitcoin_faces_%E2%80%98considerable_danger_from_Fed_in_2023_%E2%80%94_Lyn_Alden_%E2%80%9C\"><\/span>&#8221; Bitcoin faces &#8216;considerable danger&#8217; from Fed in 2023 \u2014 Lyn Alden &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-5a4050f8>Bitcoin (BTC) still risks \u201cconsiderable danger\u201d in 2023 as macroeconomic conditions dictate price action.<\/p>\n<p>That is according to economist Lyn Alden, who in private comments to Cointelegraph cautioned on Bitcoin staying bullish after its January gains.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Alden_BTC_price_bottom_is_a_%E2%80%9Cprocess%E2%80%9D\"><\/span>Alden: BTC price bottom is a &#8220;process&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Optimism is increasing throughout crypto as BTC\/USD broadly retains levels, which are 40% higher than at the start of the year.<\/p>\n<p>What the rest of 2023 may hold, however, is still a topic of debate, and Alden suggests that it is naive to assume that the good times will continue unchecked.<\/p>\n<p>The reason, she says, lies with the United States lawmakers and the Federal Reserve.<\/p>\n<p>\u201cI expect the BTC bottom to be a process,\u201d she summarized about the current state of Bitcoin. <\/p>\n<blockquote><p>\u201cBTC prices are heavily tied to liquidity conditions, and liquidity conditions have been improving since Q4 2022.\u201d<\/p><\/blockquote>\n<p>That recovery has effectively removed any trace of the FTX debacle from the chart, with BTC\/USD now circling its highest levels since mid-August.<\/p>\n<p>\u201cThe FTX\/Alameda collapse pulled down the industry in the second half of Q4 even as many other assets rallied (equities, gold, etc), and now it seems that BTC is playing a bit of catch-up, and getting back to where it would have been without the FTX\/Alameda collapse occurring,\u201d Alden continued.<\/p>\n<p>BTC\/USD traded at around $22,600 at the time of writing, data from Cointelegraph Markets Pro and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/symbols\/BTCUSD\/?exchange=BINANCE\">TradingView<\/a>\u00a0showed.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/4104a210-6c37-4700-a750-62c13c674cf7.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USD 1-day candle chart (Bitstamp). Source: TradingView<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"%E2%80%9CConsiderable_danger_ahead%E2%80%9D\"><\/span>&#8220;Considerable danger ahead&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>What could lie beyond that \u201ccatch-up,\u201d however, could be less savory for bulls.<\/p>\n<p><strong><em>Related:\u00a0BTC metrics exit capitulation \u2014 5 things to know in Bitcoin this week<\/em><\/strong><\/p>\n<p>The Fed is currently conducting quantitative tightening (QT), removing liquidity from the economy to fight inflation after several years of mass liquidity injections, which began in March 2020.<\/p>\n<p>These are being mitigated thanks to U.S. domestic politics, but later on, the status quo could shift back to the kind of restrictive mood seen throughout Bitcoin\u2019s bear market year of 2022.<\/p>\n<p>\u201cThere is considerable danger ahead of for the second half of 2023,\u201d Alden explained. <\/p>\n<blockquote><p>\u201cLiquidity conditions are good right now in part because the U.S. Treasury is drawing down its cash balance to avoid going over the debt ceiling, and this pushes liquidity into the financial system. So, the Treasury has been offsetting some of the QT that the Federal Reserve is doing. Once the debt ceiling issue gets resolved, the Treasury will be refilling its cash account, which pulls liquidity out of the system. At that point, both the Treasury and Fed will be sucking liquidity out of the system, and that would create a vulnerable time for risk assets in <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> including BTC.\u201d<\/p><\/blockquote>\n<p>If H2 proves to be Bitcoin\u2019s reckoning, it would tie in with other warnings from market commentators regarding 2023. <\/p>\n<p>As Cointelegraph reported, Arthur Hayes, former CEO of exchange BitMEX, has a much grimmer forecast for the year, likewise courtesy of Fed policy.<\/p>\n<p>In the long term, however, Alden is confident that Bitcoin will recover from its recent lows for good.<\/p>\n<p>\u201cI do think this is a deep value accumulation zone for BTC with a 3-5 year view, but traders should be aware of the liquidity risks in the second half of this year,\u201d she concluded.<\/p>\n<p class=\"post-content__disclaimer\">The views, thoughts and opinions expressed here are the authors\u2019 alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bitcoin-faces-considerable-danger-from-fed-in-2023-lyn-alden\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Bitcoin faces &#8216;considerable danger&#8217; from Fed in 2023 \u2014 Lyn Alden &#8220; Bitcoin (BTC) still risks \u201cconsiderable danger\u201d in 2023 as macroeconomic conditions dictate price action. That is according to economist Lyn Alden, who in private comments to Cointelegraph cautioned on Bitcoin staying bullish after its January gains. Alden: BTC price bottom is a&#8230;<\/p>\n","protected":false},"author":1,"featured_media":543407,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/2f1ebe86-a070-49f0-818e-db4952189871.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,70550,73785],"class_list":["post-543406","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-federal-reserve","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/543406","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=543406"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/543406\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/543407"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=543406"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=543406"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=543406"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}