AI Stocks Overvaluation May Drive Next Bitcoin Price Increase

Macroeconomist Lyn Alden has shared her insights on the potential drivers of Bitcoin's next major price increase. According to Alden, the excessive overvaluation of AI stocks could be a key factor in this scenario.

Alden points out that when an asset's price becomes too high to justify further gains, capital often moves into other opportunities with more potential upside. In this case, she suggests that investors may rotate their capital from AI stocks to Bitcoin and other cryptocurrencies.

This rotation could be beneficial for Bitcoin, which has been experiencing a decline in recent months. However, Alden emphasizes that it only takes a marginal amount of new demand to move the price higher. She notes that long-term holders have essentially put a floor under the market, making it less likely for prices to drop significantly.