Financial expert Lyn Alden predicts that while global liquidity will continue to rise in 2025, it won’t be a sudden boom like we’ve seen in the past.
Steady Growth, Not Fireworks
Alden, known for her insights into the macroeconomy, expects liquidity to increase at a more gradual pace in 2025. She says that while 2022 was a particularly bad year for liquidity, things stabilized in 2023 and 2024.
“I don’t see a huge burst of liquidity in 2025,” she explained. “It’s more likely to be a steady climb.”
Low Interest Rates Don’t Have the Same Impact
Alden believes that the current low interest rates won’t have the same effect on refinancing and investments as they did in the past.
“A lot of debt is already locked in at lower rates from when interest rates were near zero in 2020 and 2021,” she explained. “So, lowering rates now won’t encourage as much refinancing.”
She also pointed out that lowering short-term interest rates doesn’t always lead to lower long-term rates, which is where many people borrow money.
What This Means for Investors
Alden’s prediction of a steady rise in liquidity suggests that the market might not see a dramatic surge in risk assets like Bitcoin. However, it’s important to remember that this is just one expert’s opinion, and the market can always surprise us.
