In a recent appearance, Lark Davis delivered a comprehensive analysis of Bitcoin, inflation, and upcoming political implications for the crypto market. The CoinSpeech team collected the most important takeaways from his talk. You can find Lark Davis’s new video below.
Inflation News: The Good, The Bad, and The Uncertain
One of the key highlights from Lark Davis’s discussion was the recent inflation news, which came in slightly better than expected. “Inflation came in good, markets are up—keeps happening like that, doesn’t it?” Despite this positive tidbit, the market remains in a state of flux. The core CPI came slightly softer than the consensus expectations, creating a lot of buzz around potential interest rate cuts.
Although the FED is still far from achieving its target inflation rate of 2%, Davis notes, “The FED basically staying course, the status quo is being maintained.” The crux of the matter remains: “When do they start cutting, and how much more damage do they plan to do before the first rate cuts actually come in?” Modern monetary theory continues to be a cycle of manipulation by central banks, leading to a protracted period of volatility in the market.
Bitcoin’s Price Behavior and Market Sentiment
The show’s pivot from inflation to Bitcoin reveals interesting insights. Contrary to what some may expect, Bitcoin hasn’t seen a new all-time high just because the S&P 500 did. “Bitcoin is not a new all-time high today because Bitcoin, that’s why. Deal with it basically,” Davis states with a tone of realistic expectation.
The key numbers Davis emphasizes: “Until we cross over $72,000, expect more consolidation in the range.” He is quick to point out that the recent price dips and rises are nothing to be overly concerned about, as they fall within an expected range of volatility. “Bitcoin doing coin stuff… if these kinds of moves freak you out, you’re probably overexposed or overleveraged.” The endgame? The market is in a consolidation phase, and significant movement will only be seen once key price levels are breached decisively.
Massive News from Brazil
Davis also brought exciting news from Brazil where 60 million customers of Itau Bank, the largest bank in the country, can now buy Bitcoin. “Think about how insane that is. Coinbase has 120 million customers; this is half as big as that,” he points out. This represents a monumental opportunity for increasing Bitcoin adoption through massive new Fiat on-ramps.
Not all 60 million customers are going to buy Bitcoin, but even if a fraction does, it could inject significant volume into the market. “This is the Fiat on-ramp tsunami that we’re seeing,” Davis highlights, pointing out the paradigm shift this could induce in Bitcoin adoption.
The Crypto-Election: Bitcoin and Politics
Davis did not shy away from the politically charged atmosphere surrounding Bitcoin in the upcoming U.S. presidential elections. Both Trump and RFK Jr. have emerged as crypto-friendly candidates. “Trump has actually been getting involved in crypto. The dude owns Ethereum; he sold NFTs,” Davis remarks.
This burgeoning crypto-political landscape is a game-changer: “This is the crypto election in the USA in 2024,” solidifying the necessity for political candidates to assert their stance on Bitcoin and other cryptocurrencies. For Davis, it’s clear: “You can’t argue the fact that things have got real crazy real fast.”