Lark Davis dives into the aftermath of last week’s brutal crypto crash, calling it the biggest liquidation event in history. Instead of panicking, he compares it with past crashes to assess how long recovery might take. His outlook? This isn’t the start of a new bear market - we may be back on track in under three months.

Lark’s Outlook – Key Points

Key Highlights:

  • Historical crashes recovered fast – Past major liquidations (like May 2021 or FTX) saw full recovery in 1.5 to 3 months. Only the Terra Luna crash took much longer.

  • This crash wiped $880B – That’s 21% of the market in a single day, but not unprecedented when compared to earlier crashes in crypto history.

  • Macro conditions support recovery – Rate cuts, rising liquidity, and strong global markets suggest this isn’t a bear market start.

  • Cycle debate matters – If this is an extended cycle (not the old 4-year pattern), crypto should recover fast. If the 4-year cycle still holds, a new multi-year bear market could be forming.

  • Key level: $4.13T market cap – If crypto reclaims this level in the next 90 days, Lark says it’s proof we’re in an extended cycle and likely heading into a strong 2026.

Final Takeaway

Lark believes we’re in a new, longer macro-driven cycle - not another crypto winter. He expects the market to recover fully within 90 days, setting up 2026 as a big year for crypto and stocks.

Benjamin Cowen – Altcoins and the end of QT (15.10.2025 Summary)
Previous Post
Benjamin Cowen – Altcoins and the end of QT (15.10.2025 Summary)