Lark provides an update on the recent crypto market crash and its potential implications. He explains that there was significant volatility in both Japanese and crypto markets, with crypto becoming heavily oversold. This presented a buying opportunity for those with available cash.
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The main cause of the turmoil seems to be the unwinding of the Japanese yen carry trade. Lark explains that people had borrowed yen cheaply to invest in other assets, but when the yen's price moved sharply, they were forced to sell those assets to cover their positions. This led to a domino effect across markets.
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Despite the crash, Lark remains optimistic about the long-term prospects of crypto. He points out that major financial institutions like Morgan Stanley are now allowing their advisors to pitch Bitcoin ETFs to clients, which could bring more mainstream adoption.
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Regarding his own portfolio, Lark admits he had to sell some assets to reduce his risk of liquidation on loans. While this wasn't ideal timing, he feels it was necessary to protect his overall position. He encourages viewers to learn from his experience about the dangers of leveraging in crypto.
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Looking ahead, Lark suggests that while there might be more volatility in the short term, he still expects a potential market top in early 2025. However, he cautions that economic factors like a possible recession could impact this timeline.
Overall, Lark advises viewers to stay cautious but not panic. He recommends focusing on strong projects and being prepared for both further dips and potential rallies in the coming months.
