Macroeconomist Lyn Alden analyzed the impact of the 2024 US presidential election result on Bitcoin and the cryptocurrency industry in general.
A possible victory of Donald Trump in the upcoming US presidential election could favor the extension of corporate tax cutswhich would lead to greater liquidity that could be directed to the crypto market, explained macroeconomist Lyn Alden.
“The market may be saying that A Trump victory increases the chances that those tax cuts will remain in place. or become permanent,” Alden said in an interview with the press. This means that“all things being equal, potentially larger deficits […] can be stimulating for parts of the market.”
According to Alden, the most important macroeconomic factor affecting cryptocurrency markets remains global liquidity, but which has gradually recovered in recent months.
Referring to the projections of the New York Federal Reserve, Alden expects the Fed’s balance sheet to be restored by 2025, or “at least not shrinking any further”. That could significantly drive up the price of Bitcoin.
“I think we are probably breaking the trend now, and if not, then I would expect a breakout later this year or in 2025,” he concluded.
Source: Ambito
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