Lark Davis, a well-known cryptocurrency analyst and trader, has identified several significant developments in the Bitcoin ecosystem that could trigger an even more intense bull cycle than initially anticipated. Davis’s perspective delves into the revolutionary changes in the Bitcoin ecosystem, such as institutional and global acceptance, which hold the potential to accelerate the current bull market.
According to the analyst, there is about to be a big shock to the Bitcoin supply. This is a result of miners now being able to produce just 450 BTC each day, due to the recently concluded Bitcoin Halving event, which cut down miners’ reward in half.
Another key catalyst pointed out by Davis is the US Spot Bitcoin Exchange-Traded Funds (ETFs). Since the approval of the products by the United States Securities and Exchange Commission (SEC) on January 10, over 3,000 BTC have been purchased on a daily basis. Consequently, BTC witnessed a surge of nearly 60%, rising from around $46,000 to $73,000 after the SEC green light BTC spot ETFs.
The latest country to approve the Spot Bitcoin ETFs is Hong Kong. Two weeks ago, the Securities and Futures Commission of Hong Kong granted approval for BTC Spot ETFs to multiple leading asset managers, thereby positioning the city as a primary hub for these products. Given the previous impact of the funds propelling BTC to a new all-time high, the approval of the products in HK could cause the asset to see another surge in value.
Hong Kong’s move to approve the spot ETF products, which have already started trading today, has inspired other Asian countries, such as South Korea, Japan, and Singapore, to consider doing the same. On the other hand, the Australia Securities Exchange is already on the verge of accepting the funds within the year.
As a result of these developments, institutions from all around the world are vying for a share of the Bitcoin market. This could trigger a much broader adoption of BTC, thereby impacting prices significantly.
Davis highlighted that the availability of Bitcoin on all exchanges is presently at a record low, and the OTC desks are getting low. Due to this, the crypto expert believes this current bull cycle will be far crazier than predicted.
Despite the funds clearance in Hong Kong, BTC has yet to witness major price movements, as it continues to struggle between $61,000 and $66,000. Given this, several analysts are anticipating a further price decline in the coming weeks.
Bitcoin is currently trading at $61,322, indicating a decline of 1.60% in the last 24 hours. Its trading volume has increased by 41%, but its market cap is down by over 1% in the past day.
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