Lyn Alden Breaks her Silence on Bitcoin & The Broader Crypto Market! Things Have Changed Now.

Added: 2026-05-09

[00:00:00]Now, people rightly kind of associate crypto with scams. Yeah, I'm not really bullish. It's not really else I see that I'm bullish on or nor have I been bullish on. I think it's going to continue to stagnate. Is is that whole sector, the whole crypto sector over?

[00:00:14]I think so.

[00:00:14]>> Lyn Alden is about to break down what most crypto analysts aren't openly saying right now, revealing what's truly happening with Bitcoin and the broader crypto market. She now believes we could be approaching a critical turning point along with her concerns surrounding this shift. Several closely related topics will be covered in this video, which is exactly why you need to pay very close attention to this one right now before things start changing quickly. From my perspective, cuz people were surprised that for example, from the start of the war, Bitcoin outperformed gold, which, you know, if you pulled people ahead of time, you know, we have a straight Strait of Hormuz closer where war that Iran is ongoing, um which one out performs vast majority of people probably say gold.

[00:00:55]Um I think a really big factor was that going into that gold had a lot of fast money in it. It had a very good like 18-month period. It was like, you know, gold and silver were kind of going vertical. Uh and you know, they were they were correcting a little bit ahead of time, but in general, there were still a lot of fast money in them. Uh and whenever kind of, you know, war or or unexpected things break out, there's often deleveraging. Um and and just kind of, you know, a little bit of like a liquidity squeeze here and there. Uh whereas Bitcoin by that point had already had kind of a a kind of two-phase down bear market.

[00:01:26]Had been kind of rolling over for months. Um and a lot of the fast money out. Uh and a lot of the leverage was already kind of liquidated from some of those really big down moves that that preceded it. So, by the time the war breaks out, it's mostly held by really strong hands uh at that point. Uh in addition, when we look at kind of um you know, uh just global met like measures of liquidity, uh they're not amazing at the moment, but they're not as bad as you'd expect from almost eight weeks of of a Strait of Hormuz closer, an energy crisis, and war. While it's not always the case, I mean, Bitcoin tends to correlate with liquidity pretty closely. At least it's one of the major input variables among a few others uh that tend to kind of correlate pretty well. Um and that's been holding up. So, I think the combination of fast money is already out. It's already kind of washed out. Um and then we have, you know, decent liquidity conditions, and then strategies been kind of tuning their uh stretch product. Uh so, they've been able to kind of raise They They trouble buying much Bitcoin in the prior bear market. Uh so, if anyone kind of following that, they, you know, they bought a lot in 2021, but they didn't really buy much in 2022. And it's not because they didn't want to. It's cuz they it's didn't really have the mechanisms to do so.

[00:02:37]Uh but they've been able to kind of tune the knobs differently uh this cycle, so they they've actually been kind of more rapidly accumulating recently, which, you know, all else being equal, does put some upward pressure on the price.

[00:02:48]Because it's a self-custodial, portable, liquid, you know, money, um it does have risk-off characteristics. But just because it's, you know, it's a 17-year-old technology, it's still not widely understood by traditional finance. It's still small in the grand scheme of things. Many large pools of capital still treat it as risk-off. There's a couple caveats around like and I've had discussions with with some institutions actually on this about why uh most crises Bitcoin tends to not do great for the next couple weeks. It tend, you know, it tends to be a risk-off asset. But a handful of crises, it does well. And the kind of the main one they would point to is that regional bank crisis of of spring 2023. And my kind of point there again comes down to liquidity, which is that there are certain types of crises that when they occur are very negative for liquidity.

[00:03:36]Uh and you can see that for example in say the dollar index spiking. That that's like a sign, especially when it happens very quickly, that there's a sign of global kind of dollar shortage.

[00:03:45]Normally, uh if you if you ask people, okay, we're going to attack Iran and close the Strait of Hormuz, most people would would expect that's a negative liquidity event. And, you know, in in past cycles, that possibly could have been the case. And this time it wasn't. There really was no spike in the dollar index. Uh there's no major sign of dollar liquidity shortage of of kind of the various indicators that I track.

[00:04:08]>> [snorts] >> Uh and so, while there has been obviously some turbulence, you know, the stock market went down for a little bit and it kind of rolled back up even though the the Strait is still closed.

[00:04:17]Um uh overall liquidity conditions are fine. There's not a lot of kind of forced selling. Uh I guess that's how that's kind of how I would describe a liquidity squeeze squeeze. That there's often forced selling.

[00:04:29]And usually Bitcoin does really bad in that environment, especially if it happens over a weekend because if they expect they're going to have to sell on Monday and you're a large pool of capital and you're kind of stuck, well, if you have it, you can you can short Bitcoin. You can sell any Bitcoin you have 24/7. So, you can you can sell it on a Sunday evening if you want to or have to. Um and so, I think it's it's often kind of like the it kind of has the unfortunate role of like the biggest thing that trades 24/7.

[00:04:53]Uh and it is, you know, perceived as risk-off. But in some of these exceptions, it's it's because liquidity conditions kind of held up better than one might expect. So, in a in a pro-liquidity crisis, it actually does pretty well more often than not.

[00:05:07]Is is that whole sector, the whole crypto sector over?

[00:05:11]I think so in the sense that I define over as stagnating now. Not meaning it obviously goes away tomorrow, but that it it's not it's no longer a growth industry.

[00:05:19]Uh it never really was. It's just that now it's kind of being marked to market.

[00:05:23]Um and so, if you kind of look at I think the you can kind of measure this in terms of narrative exhaustion. So, the really early wave of all coins was like alternatives to Bitcoin. They're saying, "Hey, you know, the steel man case to them is, "Hey, did we get the block size right? Did we get the speed right? Did we get the privacy settings right? Let's try Let's throw Let's throw some alternatives at the wall and see what the market picks." Right? That's kind of the early phase. Then there was the ICO one basically saying, "Oh, we can just go around the SEC and issue our own securities and then get potentially sued." Uh so, that was like the second wave.

[00:05:54]Then there's been a little bit of a resurgence in privacy coins for a while.

[00:05:58]Um which yeah, I think that's kind of over now. Uh we'll see if that Yeah, that that could have another round of legs to it. Uh meme coins had a couple attempts.

[00:06:07]Uh and and kind of this last cycle, there really wasn't a narrative. The narrative was kind of meme coins. Um and I think that's that's almost like the the final cycle uh where it's like you don't even pretend that there's something innovative here. It's just like let's It's basically player versus player uh competition. Uh and I think just now people rightly kind of associate crypto with scams or scam-adjacent uh kind of like Ponzi-adjacent, um and that I think that the just the overall kind of value that space is minimal. I think Bitcoin is valuable. I think stablecoins are doing something for a lot of people that they they want dollars. They want pay digital payment rails in dollars. Um I think there's some legs for tokenization, meaning that, you know, if you can tokenize gold, which people have been doing since at least 2018, um you can kind of like a global ETF in a way. You know, it's an ETF that you can have almost regardless of what country you're in.

[00:07:01]Um tokenizing major stocks, you know, for people that want it just it's harder for them to get access in their own country and they want either an S&P 500 token or an Nvidia token or, you know, uh but I I think beyond either to you know, tokenizing a handful of those kind of real things um and Bitcoin, yeah, I'm not really bullish. It's not really else I see that I'm bullish on or nor have I been bullish on. I think it's going to continue to stagnate. With respect to what Lyn Alden has been saying, if you've been following the crypto market for a while, you likely understand the core value behind Bitcoin.

[00:07:35]That's exactly why blindly following the crowd can hold you back.

[00:07:39]Instead, take the time to truly learn, build conviction, and recognize why many see Bitcoin as a long-term opportunity.

[00:07:47]Focus on steadily increasing your exposure through dollar cost averaging because that's how real wealth is built over time.

[00:07:55]There are no shortcuts here. Just consistency, patience, and informed decisions.

[00:08:01]Stay aware of market movements, keep learning, and always try to have some capital ready so you can take advantage of dips when they come instead of reacting emotionally or missing opportunities.