Market expert and Bitcoin (BTC) investor Lark Davis has predicted an “insane” trajectory for the crypto market over the next 90 days, with a confluence of factors poised to drive significant growth and change within the digital asset landscape.
In a recent social media post, Davis outlined compelling reasons underpinning his bullish outlook for the crypto market.
Looming Catalysts Set To Ignite Crypto Market
One key catalyst highlighted by Davis is the anticipated potential for rate cuts by the US Federal Reserve (Fed) within the next three weeks. Federal Reserve Chair Jerome Powell’s recent remarks at the Jackson Hole Economic Symposium hint at a dovish monetary policy stance, which could fuel a surge in risk assets like Bitcoin.
In addition, the specter of the upcoming US election, just 71 days away, looms large as a pivotal juncture for the industry. With former President Trump’s vocal support for cryptocurrencies, his potential return to the White House could usher in a new era of crypto-friendly policies.
Trump has already promised to be the first “crypto president,” which could mean big changes in the leadership of the US Securities and Exchange Commission (SEC) and a more permissive regulatory environment for the industry, which under the Biden administration has been characterized by lawsuits and regulation by enforcement.
Trump’s advocacy for digital assets, including a proposal to create a Bitcoin reserve to offset the $35 trillion national debt and the firing of SEC Chairman Gary Gensler on day one, could further boost confidence in the market, leading to further price appreciation, as analysts expect.
The release of Changpeng Zhao (CZ), former CEO of the world’s largest exchange Binance, from legal entanglements on September 29, could also mark a turning point for the industry, according to the expert, offering a fresh catalyst for the market.
FTX Payout, China Unban, And Geopolitical Shifts
Further bolstering the bullish outlook is the anticipated $16 billion payout from the collapsed FTX exchange. As these funds are distributed to affected users, a significant portion of the capital could flow back into the crypto market, fueling a surge in demand for the leading digital assets.
Lastly, rumors of China potentially unbanning crypto and Russia’s move towards embracing international crypto payments are additional factors that could contribute to the market’s momentum in the coming months.
According to Davis’ analysis, reopening the Chinese market and Russia’s pro-crypto stance are both incredibly bullish developments. This could potentially unlock massive new sources of capital and demand for cryptocurrencies.
Ultimately, these developments are seen as potential catalysts for the market in the next 3 months, which could contribute to further price appreciation for the largest cryptocurrencies. It remains to be seen if all eight can be achieved, but if not, the vast majority of them could significantly impact virtual asset space.
At the time of writing, BTC was trading at $61,830, down 3% in the 24-hour time frame, after hitting a one-month high of $65,000 on Sunday.
Featured image from DALL-E, chart from TradingView.com