Lark Davis believes the cryptocurrency market is about to enter a major turning point in five days, when a new administration and a new SEC head take office in the United States. He expects a more pro-crypto environment that could weaken the dollar and potentially drive up Bitcoin’s price. He jokes that Trump might tie his ego to Bitcoin’s value, hoping for policies like allowing US banks to directly custody and sell Bitcoin. In his view, that could trigger a powerful price surge, even to the point of talking about numbers as high as 250000 dollars per Bitcoin someday.
He also discusses current market movements. He notes that, after recent dips, Bitcoin has rebounded and is trading above key indicators like the 20-day and 50-day EMAs. However, he remains cautious. He points out that Bitcoin remains in a downtrend until it can break back over $100,000 dollars or even $102,000 dollars. At the same time, large amounts of fresh capital continue to show interest in crypto, especially with the possibility of more spot ETF approvals for altcoins like XRP and Solana.
Lark is keeping a close eye on inflation reports. He highlights that recent producer price index data came in cooler than expected, and he is waiting to see how consumer price index numbers will follow. If inflation prints come in lower, he believes the market might rally. On the other hand, any surprise on the upside could slow down crypto’s momentum.
With so much happening in macroeconomics and crypto regulation, Lark expects continued volatility, but he remains optimistic that the right political and financial conditions could spark a significant crypto surge in the near future.
