Lyn Alden: The Fed is Printing Money, What Will Happen to BTC?

Lyn Alden’s Fed Monetary Policy and BTC Prediction

Economist and Bitcoin advocate Lyn Alden stated that the US Federal Reserve has entered a “gradual” money printing period, noting that this will mildly stimulate asset prices but will not be the dramatic “big print” expected by the Bitcoin (BTC) community. In her February 8 investment strategy newsletter, Alden forecasted that the Fed will grow its balance sheet total at a rate proportional to total bank assets or nominal gross domestic product (GDP), and recommended holding high-quality scarce assets, moving away from overhyped areas to underowned ones. Click for detailed BTC analysis.

Federal Reserve M2, a measure of money supply, continues to expand over time. Source: FRED

Kevin Warsh Fed Chair Candidate: Market Reaction

US President Donald Trump’s nomination of Kevin Warsh as the next Fed Chair has sparked debate in the markets due to Warsh being seen as more hawkish on interest rate policies compared to other candidates. Expectations for a rate cut at the March Federal Open Market Committee (FOMC) meeting have fallen to 19.9%. Current Fed Chair Jerome Powell has given mixed signals despite multiple rate cuts in 2025; his term ends in May 2025 and Warsh has not yet received Senate approval.

Target rate probabilities before the March FOMC meeting. Source: CME Group

BTC’s Recent Rise and Technical Outlook

In the last 15 hours, BTC rose 15% from $60,000 to above $68,000, currently at $70,728 (+1.80% 24h). RSI 34 (oversold), but downtrend and bearish Supertrend continue. Strong supports: $65,842 (S1, 70% score) and $60,000 (S2). Resistances: $72,115 (R1, 80% score). Garrett Jin’s deposit of 5,000 BTC ($351M) to Binance drew attention as whale activity. Watch BTC futures. Pressure above EMA20: $79,077.