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Bitcoin's Consolidation Is The 'Calm Before The Storm,' Veteran Trader Lark Davis Writes

Published 26/04/2024, 16:33
© Reuters.  Bitcoin's Consolidation Is The 'Calm Before The Storm,' Veteran Trader Lark Davis Writes
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Benzinga - by Khyathi Dalal, Benzinga Staff Writer.

Despite Bitcoin‘s (CRYPTO: BTC) consolidation period, veteran cryptocurrency influencer Lark Davis believes this is just the calm before the storm, pointing to several bullish factors for Bitcoin’s price.

What Happened: In his latest tweet, Davis discussed Bitcoin’s current state, emphasizing the quietness in the market and the ongoing consolidation phase.

Despite this, Davis remains bullish, referring to the period as “the calm before the storm.”

He highlighted the growing institutional interest in Bitcoin, noting that despite bearish sentiment on Crypto Twitter, significant developments are underway.

Davis specifically mentioned the upcoming launch of Bitcoin ETFs in Hong Kong, scheduled to begin trading next week, and noted that other countries like Japan, Singapore, South Korea, and mainland China are also poised to embrace Bitcoin, suggesting a broader adoption trend.

Also Read: Bitcoin Could Soar Up To $1M, Says Strike CEO Jack Mallers: ‘Violent To The Upside’

Why It Matters: Davis underscored the significance of Morgan Stanley’s decision to allow 15,000 brokers to recommend Bitcoin ETFs to clients, potentially bringing a substantial influx of institutional capital into the crypto market. He notes, “Bitcoin ETFs and whales [are] continuously buying thousands of Bitcoin every day.”

Despite market consolidation, large investors are actively accumulating Bitcoin, as evidenced by ongoing whale transactions.

IntoTheBlock data highlights transactions greater than $100,000 at 8,529 as of April 25 compared to 4,882 as of April 20.

Davis’s tweet serves as a reminder that while short-term market sentiment may be bearish, many traders remain long-term bullish. Despite the current consolidation, data indicates that most Bitcoin holders remain in profit (90%), reflecting resilience and confidence in the asset’s future trajectory.

What's Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.

Read Next: Bitcoin’s Consolidation Phase Best Met With ‘Zoom Out, Perspective, Patience’ Approach, Says Trader

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image created using artificial intelligence with Midjourney.

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

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