Macroeconomic expert Lyn Alden views Bitcoin 
$89,935 very positively in the long term due to the increasing interest payments on the US government’s national debt exceeding $35 trillion.
Long-Term Expectations
In her latest newsletter, Alden noted that Bitcoin shows a high correlation with global liquidity and expects this trend to continue.
“My five-year outlook is very positive, but volatility should be considered in portfolio sizes.”
Alden believes that the US government will face structurally high deficits in the coming years, which could lead to an increase in Bitcoin’s value in the long term. Referring to data from the Congressional Budget Office (CBO), she stated that the US national debt could reach $55 trillion within a decade.
Rising Interest Payments and Economic Impacts
“This means adding more than $20 trillion in new public debt over the next 10 years.”
According to Alden, the interest payments on the rising national debt are stimulating the US economy and increasing global liquidity, creating a favorable environment for Bitcoin.
“Interest payments from the federal government to the private sector have stimulated some parts of the economy. The economy performed better than expected, and inflation struggled to fall to the 2% target.”
Current Financial Situation
According to Treasury Department data, the US government is paying $763 billion in interest on its debt for the 2024 fiscal year. This was recorded as the second-largest government expenditure right after Social Security.
At the time of writing, Bitcoin was trading at $56,730 with a daily increase of 3.35%.
In conclusion, macroeconomic expert Lyn Alden’s statements indicate that the increasing interest payments on the US national debt could boost Bitcoin’s long-term value. Increased liquidity and structural deficits may contribute to Bitcoin’s value appreciation. These assessments could increase investors’ interest in Bitcoin and be considered when forming long-term investment strategies.
