Cryptocurrency analyst Lark Davis is bullish on the long-term prospects of the crypto industry, predicting a significant surge in the next 12 months. In a recent post on social media platform X, Davis highlighted several factors that he believes will fuel this growth.
One key indicator Davis points to is the current record-high gold prices. He argues that Bitcoin often follows gold’s price movements with a slight delay. August saw a significant surge in gold prices, with a single gold bar reaching a million dollars for the first time ever. Financial institutions like J.P. Morgan are also optimistic about gold’s future, predicting it to exceed $2,500 per ounce by the end of 2024 and reach $2,600 per ounce in 2025.
Davis also emphasized the weakening of the US dollar, citing the declining dollar index and rising global M2 money supply. The dollar index has reached a three-week low against the yen, driven by the dovish stance of the Federal Reserve Chair Jerome Powell. It also hovers near multi-month lows against the euro and sterling due to divergent central bank policies and anticipated rate cuts in the US.
Adding to his bullish outlook, Davis also mentioned the US elections, stating that historically, elections have been favorable for the crypto market. He believes there’s a possibility of a pro-crypto president being elected in November. Currently, former President Donald Trump and Vice President Kamala Harris are tied in prediction markets. Trump has been vocal about his support for crypto and has even launched his own crypto-focused project called “World Liberty.”
Davis concluded his analysis by stating that the past few months have been volatile but believes the next 12 months will be “insane” for the crypto market. He expects a significant upward trajectory, with Bitcoin potentially following gold’s lead.
While Bitcoin and Ethereum have experienced recent downturns, Davis’s prediction highlights a potential shift in the near future. The upcoming Benzinga Future of Digital Assets event on November 19 will delve further into the influence of Bitcoin as an institutional asset class.
