Macro expert Lyn Alden is sharing her top asset recommendation for the upcoming year as signs of growing liquidity emerge. In a recent discussion with finance journalist and YouTuber David Lin, Alden expressed that she is particularly optimistic about Bitcoin (BTC) for 2025.

Alden anticipates that Bitcoin will exhibit robust market performance next year, attributing this optimism to the digital asset’s historical tendency to rise in conjunction with increased liquidity and a more accommodating monetary policy.

“We seem to be moving away from peak credit tightening in the U.S., which is favorable for liquidity. On a global scale, we are also witnessing increased stimulus from China, which supports liquidity as well. As we discussed earlier in the interview, the outcome of the Treasury General Account (TGA) in the first half of 2025 is a significant factor that could influence liquidity. There could be as much as $800 billion of TGA funds re-entering the banking system, depending on whether the debt ceiling negotiations become drawn out.

While I don’t have a definitive stance on the scale of these changes, I generally see a positive trend in liquidity for the next year. Consequently, my outlook on Bitcoin is also optimistic for the coming twelve months, as they tend to correlate closely.”

Lin noted that there are occasions when Bitcoin’s connection to rising liquidity falters, particularly when its market capitalization significantly exceeds its realized capitalization. The realized cap reflects the price of each Bitcoin at the time it last changed hands, providing insight into how many holders are in profit or experiencing losses.

“There have been a few instances where Bitcoin has diverged from its correlation with liquidity, and this usually happens during periods of extreme valuation. There are various methods to assess Bitcoin’s valuation, with my preferred approach being the market cap to realized cap ratio.

During substantial bull runs, it’s common for the market cap to outpace the realized cap considerably. Conversely, there are periods when the market cap is only slightly above or, in rare cases, even below the realized cap. These scenarios are generally less concerning from a valuation perspective, as the sentiment and overbought conditions are not as pronounced. Given my expectation for liquidity to increase over the next year and the absence of extreme Bitcoin valuations, I feel quite bullish about Bitcoin.”

As of the time of this writing, Bitcoin is priced at $71,975.

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