Lyn Alden says Bitcoin needs no saviour

• Macroeconomist Lyn Alden said Bitcoin should succeed on its own merits despite Strategy selling 3,588 Bitcoin worth about US$216 million.
• Alden warned investors about leverage risks tied to Strategy's STRC preferred stock while saying the product has a role for some investors.
• She also urged caution over rapid changes to the Bitcoin protocol, including proposals to reduce blockchain spam.

Bitcoin (CRYPTO:BTC) should succeed based on its own characteristics rather than relying on corporate demand, macroeconomist Lyn Alden said after Strategy disclosed the sale of 3,588 Bitcoin valued at about US$216 million.

Alden said Bitcoin sentiment has fallen to its lowest level of the current market cycle, contrasting the mood with 2022 when the cryptocurrency traded near US$16,000 but investor confidence remained stronger.

“Bitcoin needs no savior, and can survive on its own merits,” Alden said.

Alden said Strategy's STRC preferred stock provides an option for investors seeking exposure to the company's Bitcoin strategy, but warned that higher-yielding Bitcoin-linked products could encourage greater use of leverage despite recent efforts by Strategy to strengthen reserve coverage.

Alden said her base case is that Bitcoin will not reach a new all-time high this year, while adding she expects the market to remain stable enough to avoid setting new cycle lows.

She also discussed Bitcoin Improvement Proposal 110, saying she is cautious about making rapid changes to the network and believes technical arguments should be assessed carefully before modifying the protocol.

Alden added that describing proposed Bitcoin protocol changes as existential threats exaggerates their significance, arguing that such messaging does not accurately reflect the technical debate surrounding the network.

At the time of reporting, Bitcoin price was $62,043.86.