Market Expert Says, “Bitcoin Is in Its Most Pessimistic Phase I’ve Ever Seen,” and Predicts When a Recovery Will Happen

Renowned financial analyst Lyn Alden made striking statements regarding Bitcoin and general market dynamics. Alden stated that the current pessimism in the Bitcoin market is at its lowest level in her career.

According to Alden, from the fall of 2025 onwards, market liquidity will have shifted largely to companies producing artificial intelligence, semiconductors, and memory (RAM) chips.

Alden stated that Paul Tudor Jones’s past description of Bitcoin as “the fastest horse in the race” has been temporarily lost to AI stocks, and that this capital flight is putting significant pressure on Bitcoin and gold.

Highlighting that the current bear market is characterized by an institutionally driven cycle and less interest from individual investors than expected, the analyst stated that Bitcoin is quite close to the bottom of its historical valuation range according to several metrics.

He added that short-term speculative capital is shifting towards artificial intelligence, but this is paving the way for a foundation to form for long-term investors.

While acknowledging that anything is possible at any moment due to Bitcoin’s volatility, Alden stated that in his base scenario, he does not expect to see a new six-digit peak this year.

The analyst predicted that six-digit levels would be permanently surpassed in the next few years, but said his biggest expectation for this year was that no new lows would be made and the technical outlook would become horizontal-upward.

Excluding stablecoins and some tokenized real-world assets, the meltdown and loss of narrative in the altcoin market outside of Bitcoin has negatively impacted the Bitcoin price due to cross-funding.

Alden noted that the market was getting overly excited about political developments, regulations (such as the Clarity Act), or potential state-level strategic Bitcoin reserve initiatives, and issued the following warning to investors:

“There is no external force that will come to save Bitcoin. Bitcoin has to survive by proving its own worth. This unauthorized, most liquid and powerful currency of the digital age will emerge from bear markets with its own dynamics, making higher lows and highs.”

*This is not investment advice.