For nine reasons, analyst Lark Davis is bullish on Bitcoin and crypto despite the ongoing market volatility.
These reasons include the possible U.S. interest rate cuts, a stabilizing Japanese market, and increased global liquidity.
Others include the upcoming FTX payouts and the November U.S. elections.
Furthermore, Bitcoin's Pi Cycle Indicator shows that there is still room for further price increases.
Are you bullish on Bitcoin?
Despite the endless flash crashes and unexpected dips, analysts generally believe that a massive bull run is incoming, likely between now and the end of 2025.
Despite the ongoing turbulence, Bitcoin has surged by around 12% this week alone to more than $60,000, and the total crypto market cap is solidly above the $2 trillion mark.
With these bullish signs and more in mind, analyst Lark Davis recently laid out nine compelling reasons to be bullish on Crypto in a recent video.
There have long been concerns about an incoming U.S. recession and its negative effects on the crypto market.
However, according to Davis, these concerns may be overstated at best and premature at worst.
In fact, the global macroeconomic conditions relating to the U.S. have painted a more positive than negative picture.
The country has a strong job market, a decline in bankruptcies, and increased rail traffic.
All of these factors point to an economy that isn't half as bad as the media reports it to be and less of a threat to crypto and other risk assets.
So far, the U.S. has been hawkish, either raising or maintaining its interest rates and putting pressure on the crypto market.
According to Davis, the FED might consider a rate cut in the future, likely around September.
This is another reason for optimism: the incoming flow of liquidity can positively affect investor interest in crypto.
Moreover, investors also appear to be looking forward to this cut happening, especially with U.S. Senators like Elizabeth Warren, Jacky Rosen, and John Hickenlooper recently writing a letter to Jerome Powell, the chairman of the FED.
Letter to cut the interest rates
In the letter, Warren and the others urged Powell to consider cutting interest rates to ease financial strains on working Americans.
We are seeing some degree of stability starting to enter the Japanese financial market, especially after the first rate hike since 1987 in March.
This stability comes as the deputy governor of the Bank of Japan (BOJ), Shinichi Uchida, promised to halt its hikes in interest rates as a way to ease market volatility and contribute to financial stability on a global scale.
This interest rate halt has eased pressure on the crypto market, giving Bitcoin and the altcoins a chance to rally.
So far, the Middle East has remained relatively stable, which has also reduced disruptions to global oil supplies.
In turn, this stability has allowed the rest of the world to maintain a steady state of growth, which indirectly benefits crypto.
According to Davis, this might be one of the major signs of an incoming recovery.
Data from Farside shows that the Bitcoin ETF market has been relatively stable despite its issues.
Furthermore, daily inflows now regularly surpass the number of new Bitcoin being mined.
This growth shows healthy demand for these ETFs, which now have total inflows of around $17.3 billion.
The FTX estate is also moving forward in its plans to return $12.7 billion to its creditors.
This amount of crypto entering the market is also expected to inject massive liquidity into the market, boosting sentiment and possibly driving up prices.
The market continues to wait for the 27 October deadline for the repayment plan approval, and if approved, the crypto market might see a massive shakeup.
The analyst also mentioned the Pi Cycle indicator as another reason for being bullish. This tool is fairly accurate for predicting Bitcoin price peaks and currently shows that the cryptocurrency isn't at its peak yet.
The Bitcoin Pi cycle
This means that amid the bearishness, there might be some major room for an incoming upside move.
Historically, when the orange line above (the 111 DMA) crosses over the green (the 350 DMA), analysts consider Bitcoin to have peaked.
As shown, Bitcoin hasn’t peaked yet, and there is room for further upside.
Davis mentioned that global liquidity has been rising lately, driven mostly by an increased money supply and central bank actions worldwide (like the Bank of Japan).
This trend is in favour of higher Bitcoin prices, with higher liquidity historically leading to higher prices.
The U.S. elections are expected to happen in November, with significant market volatility expected.
Events like these have always led to changes in the crypto, stock, and most other financial markets.
The recent remarks by Donald Trump at the Bitcoin conference also add a great deal of promise to crypto rallying, with the general market expecting a major boom if the Republicans come out on top.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.