Lyn Alden Says Bitcoin (BTC) Could Attract New Buyers After 6% Surge

Macroeconomist Lyn Alden said in a Thursday interview that Bitcoin (BTC), while not necessarily “out of the woods,” has few remaining downside catalysts after this week's surge. Alden said the “fast money” has been washed out and that market observers no longer expect corporate Bitcoin treasury Strategy to sell down its holdings. She argued that by almost every metric Bitcoin sits near the low end of its valuation and sentiment range, meaning even modest upside could bring technical traders back and, if momentum builds, momentum traders later. Data tracked by COINOTAG put Bitcoin near $72,660 late Thursday, up more than 6% over 24 hours, after it reached $72,890 earlier in the session. The climb followed President Donald Trump's White House meeting with crypto executives, during which he urged lawmakers to pass the Clarity Act, the long-stalled market-structure bill; the legislation cleared the House last year but has been stuck in 2026, and a vote expected in August has slipped to September. Alden cautioned that Bitcoin still sits in a bear market after recording an all-time high of $126,080 in October, but said hard assets that are “under-owned” should come out ahead over the long run. She added that even a technically improved chart can start to attract new types of buyers.

At the same White House meeting, Trump confirmed that a “significant” US government purchase of Bitcoin is under active consideration. Asked whether Washington could acquire the asset, Trump said the idea had come up and that he would review recommendations from SEC Chairman Paul Atkins and other officials. He also pressed lawmakers to move the Clarity Act forward and said the CFTC is working with Hyperliquid, a decentralized perpetual futures exchange, on its US expansion. Around the same time, the Treasury Department doubled its buyback ceiling for long-dated government bonds to $4 billion per operation from $2 billion, a step intended to counter climbing long-term yields that had been capping asset prices. The convergence of policy signals sent Bitcoin up as much as 8%, its strongest level since June. Yet the episode has revived a debate about intervention-driven markets. Skeptics note that Washington has increasingly used policy tools to steer currencies, bonds and now digital assets, and that repeated intervention can encourage speculation ahead of underlying demand. If investors begin to trade on the assumption that the government will backstop risk assets, the disconnect from the real economy may deepen, making a shock more likely.

The macro backdrop added another layer after US federal debt crossed $40 trillion for the first time. Interest costs have now overtaken Medicare as the second-largest federal budget expense behind Social Security in the first 10 months of fiscal 2026, according to federal fiscal data. The milestone came as Treasury Secretary Scott Bessent announced that the department would double buybacks of 10- to 30-year debt to at least $4 billion per operation, part of an effort to calm a bond selloff that had pushed long-term yields to their highest levels since 2007. The announcement initially pushed yields and the dollar lower while Bitcoin and gold extended gains; by Thursday morning, Bitcoin was near $72,600, up roughly 6% over 24 hours and 15% over the past week, based on market data. Analysts were divided on the implications. TrendLabs founder and chartered market technician JC Parets said the Treasury move changes the math for everything investors own, including Bitcoin. Bitunix analyst Dean Chen cautioned that the debt milestone is not inherently bullish, because persistent deficits and larger financing needs could eventually push borrowing costs higher. Yield Basis, a DeFi protocol, argued that continued debt growth strengthens Bitcoin's case as a hedge against fiat debasement, given its fixed supply. Whether Bitcoin eventually becomes a reserve asset remains uncertain, but the protocol said it should stand out as a straightforward protective instrument alongside gold as debasement concerns mount.

Taken together, the three narratives show policy, debt and positioning aligning in Bitcoin's favor. COINOTAG's own aggregate data puts the Fear & Greed Index at 72/100 (Greed), Bitcoin's share of the tracked market at 69.2%, and the tracked market cap near $2.166 trillion. Behind the optimism, the sustainability of intervention-led momentum remains the central risk for bulls.