Lark is warning about the potential dangers and threats to the crypto market. Let’s explore the points made in his latest video.
Stalling demand from Bitcoin ETFs
Lark states: “When the demand coming from ETFs is flat, Bitcoin gets stuck…from mid-March to now the net inflows for the ETFs are flat and BTC is stuck in the $60,000 range.”
He highlights how Bitcoin’s price rallied from $40k to $75k when ETFs were accumulating over 200,000 BTC from January to mid-March. But now with flat demand from ETFs, Bitcoin is consolidating.
Regulatory crackdowns on self-custody:
Lark warns: “Privacy is a crime in America where you’re treated like a criminal if you want privacy, having your own non-custodial wallet is an increasingly criminal act…they’re coming for non-KYC wallets first.”
He cites examples like the arrest of Tornado Cash developers and concerns around regulation targeting self-custody.
Financial instability and bank failures:
Lark discusses the collapse of Republic First Bank, stating: “Another bank collapses, just a Friday afternoon sort of thing…Banks collapsing right now, big deal right?”
He sees these bank failures as part of broader financial system turmoil that could negatively impact crypto.
Japanese Yen devaluation:
Lark references the Japanese Yen crisis, saying: “The slow-motion meltdown has finally begun to accelerate and authorities are powerless to stop the decline…”
He views this as a signal of potential market instability impacting risk-on assets like Bitcoin.
Volatility and steep drawdowns:
Lark reminds holders: “We have to expect these regular massive brutal savage drawdowns in the market where your Bitcoin goes down 20 to 30%...if you can stick with it long-term you have to see where we’re going.”
He prepares holders for potential sharp sell-offs during bull markets.
Overall Lark’s Bitcoin market warnings stem from his concerns around institutional influence, regulatory overreach, macroeconomic turbulence, and the inherent volatility of Bitcoin – advising holders to stay cautious and have contingency plans.
