Crypto analyst Lark Davis recently predicted that this bull run could be more massive than most people think. He outlined why this market cycle could distinguish itself from the previous ones.
Why this bull run will be ‘face melting’
Davis mentioned in an X (formerly Twitter) after that crypto market participants are about to witness a ‘face-melting bull run’. He alluded to the influence of institutional investors as the reason why this bull run stands out. First, he noted how the US Spot Bitcoin ETFs already register hundreds of millions of daily inflows.
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Thanks to the impressive demand for these funds, Davis highlighted that fund issuers have purchased 56,150 BTC in the last 18 trading days. He claims that this amount of Bitcoin represents four months’ supply injected into the ecosystem by Bitcoin miners. These fund issuers aren’t just the institutions buying up flagship crypto.
Davis also noted that companies like MicroStrategy, Block, and Semler Scientific have continued to accumulate Bitcoin. The analyst also claimed that asset managers and pension funds worldwide are “queuing up” to invest in Bitcoin. Meanwhile, Davis also referred to the Discover Ethereum ETFs and the huge impact they could have in this market cycle.
These Spot Ethereum ETFs are expected to see massive inflows once they start trading. JPMorgan predicts these funds could witness inflows of $1 billion to $3 billion, and crypto research firm K33 Research predicts that these funds could see inflows of up to $4 billion in the first five months of trading.
Crypto analysts like Michael Van de Poppe have also expressed optimism about these Spot Ethereum ETFs, predicting that these funds could be the catalyst for a continuation of the bull run. In particular her to predict that these Spot Ethereum ETFs could kick-start the altcoin season, with Ethereum and other altcoins making big moves.
Other factors that could positively influence this run
Echoing Davis’ post, crypto analyst Patric outlined other factors that could positively influence this bull run. First, the analyst mentioned rate cuts, noting that Canada and the European Central Bank have already cut rates. He believes the US will likely to follow suit soon enough.
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Second, Patric noted that the Fed’s bond buying program has started. This development, together with interest rate cuts, is expected to result in quantitative easing (QE), which could increase investor confidence in investing in risky assets such as Bitcoin and other cryptocurrencies. Finally, the analyst noted that this is an election year, with the US presidential election scheduled for November.
Republican presidential candidate Donald Trump also provided a much-needed boost to the market affirmative its pro-crypto stance. On this basis, Standard Chartered Bank predicts that Bitcoin could rise to $150,000 this year if Trump wins.
Featured image created with Dall.E, chart from Tradingview.com
