Crypto bulls – on your marks! Popular crypto analyst Lark Davis, known for his uncanny ability to sniff out market trends, predicts a massive bull run is just around the corner. Davis, a seasoned expert with a proven track record, believes the crypto industry is on the cusp of a massive upswing fueled by these 10 factors check it out!
Understanding the Political Scenario
Lark Davis in his latest video analysis points to the 2024 presidential election, where Donald Trump has high chances to win. Trump’s pro-crypto stance and his new VP pick, JD Vance, who is a known Bitcoin enthusiast, could significantly impact the market. If Trump wins, we can see a more favorable environment for crypto assets and an end to regulatory drama.
Upcoming Altcoin ETFs
Next up on the horizon is altcoin ETFs. Following the SEC’s recent setbacks, there’s a strong possibility of new ETFs for various altcoins, including a spot ETH ETF. This influx of financial products is expected to bring substantial liquidity to the market. ETFs like those from Vanek, 21 Shares, and Hashdex could soon be available, enhancing access and investment in altcoins.
Increased Global M2 Money Supply
Moving on, Davis expects the global money supply to grow, which usually leads to higher crypto prices. The U.S. is easing back on its strict money policies, and China is starting to print more money. This extra money in the system could raise prices for Bitcoin and other cryptocurrencies.
Rising Global Liquidity Index
He further noted, that the global liquidity index, which measures factors like interest rates and credit conditions, is on the rise. This upward trend indicates improved market liquidity, which often leads to higher asset prices. As the index recovers from recent lows, cryptocurrencies could see gains due to this increased liquidity.
New Bitcoin Advocates in High Places
Davis notes that Bitcoin is supported by key influential figures like Larry Fink, COO of BlackRock, and Michael Dell, CEO of Dell Technologies. Their involvement and public support are seen as major endorsements for Bitcoin and could attract more institutional investment into the crypto space.
Expected Interest Rate Cuts
Interest rate cuts are anticipated, which historically have been beneficial for asset prices, including cryptocurrencies. Several European banks have already reduced rates, and the U.S. Federal Reserve is expected to cut rates this fall. This monetary easing could further stimulate interest and investment in Bitcoin and other cryptos.
No P Cycle Top Yet
The P Cycle top indicator, which has accurately predicted past market peaks, has not yet signaled a top in the current cycle. This suggests that there’s still significant room for growth before a potential market peak. Davis is keeping an eye on this indicator for further signals.
Multi-Polar World Favoring Bitcoin
In a multi-polar world where traditional fiat currencies face challenges, Bitcoin offers an attractive alternative. As global powers like China and India rise, Bitcoin’s decentralized nature and immunity to currency debasement make it a logical choice for investors seeking stability outside traditional fiat systems.
High Demand for Bitcoin from ETFs
Spot Bitcoin ETFs are absorbing massive amounts of Bitcoin. U.S. spot ETFs are buying nearly twice the amount of Bitcoin produced daily. This high demand from institutional investors through ETFs is creating a significant imbalance between supply and demand, contributing to bullish sentiment.
Impending Bitcoin Supply Shock
Finally, Davis expects a Bitcoin supply shock due to the halving cycle. Historically, supply shocks following Bitcoin halvings have led to significant price increases. With the current cycle just past the halfway point, Davis anticipates that the effects of this supply shock will begin to materialize soon, potentially driving prices higher.
In summary …
By observing these trends and the increasing institutional interest, it seems the crypto market is on the brink of an extraordinary bull run. Stay tuned for what could be one of the most exciting periods in crypto history.