Cryptocurrency analyst Lark Davis painted a rosy picture for the long-term prospects of the crypto industry, predicting significant upside for the next 12 months.
What Happened: In a post on social media platform X, Davis stated that gold prices are currently at an all-time high. He interprets this as a bullish sign, as "Bitcoin often lags gold by a few months." August saw gold prices spiking to all-time high levels, with a single gold bar valued at $1 million for the first time.
J.P. Morgan predicts gold to exceed $2,500/oz by the end of 2024, and its current predictions forecast that gold will reach $2,600/oz in 2025.
Davis also noted that the dollar index is "crashing", and global M2 Supply is rising. The dollar index is at a three-week low against the yen due to Fed Chair Jerome Powell's dovish shift. It is also hovering near multi-month lows against the euro and sterling due to differing central bank policies and expectations of rate cuts in the U.S.
Polymarket traders put the odds for a 25 bps cut at the September Federal Reserve meeting at over 75%.
Davis also commented on the the U.S. elections, saying usually elections are "bullish for the crypto market." He added that "we could get a pro-crypto president in November."
Currently, former President Donald Trump and Vice President Kamala Harris are tied on prediction markets. Trump has voiced his pro-crypto stance and has launched his own crypto-focused project called "World Liberty."
Davis concluded that it was a "long choppy summer" and now it was "time to buckle up." He stated, "The next 12 months are going to be insane." In the past month, Bitcoin is trading 10% down, while Ethereum (CRYPTO: ETH) has lost 21.2% of its value.
