- Crypto analyst Lark Davis has shared why he thinks now is the best time to buy and accumulate one’s crypto stash.
- Among his reasons include upcoming Fed interest rate hikes, heightened digital asset adoption, and the $1M Bitcoin 2030 forecast.
Many crypto enthusiasts have been promoting the crypto “Buy the Dip” mantra in recent times. The likes include serial Bitcoin purchasers Michael Saylor and Nayib Bukele. Crypto YouTuber and analyst Lark Davis has shared seven reasons why he agrees.
First, is the Fed’s plans to raise interest rates. According to Forbes, US stocks tend to finish on average 7.3 percent higher 12 months after the first Fed interest hike. Such an event was witnessed during the 2016-2017 bull market. Cryptocurrencies’ performance has, in recent times, been closely linked to those of US stocks – meaning crypto prices are likely to rise as equities markets do.
Secondly, crypto balances on exchanges, particularly those of Bitcoin and Ethereum, have now hit a three-year low, according to blockchain analytics firm Glassnode. As Davis has mentioned before, this indicates increased demand, long-term hodling, and a subsequent surge in crypto prices.
Additionally, more people are using this time to buy crypto. According to Davis, “By 2030, we are estimated to have 3.4 billion more people coming into the cryptocurrency market.” Supporting statistics include those from Deloitte, stating that 82 percent of Indians surveyed have plans to buy into crypto once the nation provides further regulatory clarity.
At the start of the month, India announced a 30 percent tax on crypto profits – communicating a preference for crypto accommodation rather than a complete ban. Another populous country adopting a pro-crypto direction is Russia, which now wants to recognize cryptocurrencies as legal forms of currency.
Why Buy Crypto Right Now?
The crypto market has spiraled since hitting record heights in November, mainly due to uncertainties regarding the actions of the US Fed. Lead cryptocurrency Bitcoin (BTC) is currently exchanging at $43,469, a 37.7 percent discount from last year’s $69K hit. Meanwhile, altcoins are down 60-90 percent from their all-time highs. The current prices are “cheap” compared to what they were a few months ago, Davis says, chipping in another crypto motto: “Buy low, sell high.”
Another reason to buy at the moment is the massive digital asset adoption by giant social media platforms. Reddit recently announced allowing users to set up any NFT (non-fungible token) as their profile picture, similar to Twitter. Meta and TikTok are also introducing NFT capabilities to users. Reddit currently supports Ethereum community tokens, while Twitter has a crypto-supporting tipping feature.
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Furthermore, Davis notes that numerous fiat gateways are beginning to open up. For instance, trading and investing app Robinhood just launched a crypto wallet now boasting over 2 million users. Banks are also increasingly adopting digital assets, with crypto custody firm NYDIG predicting that hundreds of US banks will take in Bitcoin this year.
Finally, Davis shares his take that dollar-cost averaging Bitcoin at prices below $50,000 is bound to bring great returns in the future. He talks of the $1M BTC forecast for 2030, which promises 20-fold or more in returns for those who buy under $50K.