Home Blockchain Lark Davis, Founder of Wealth Mastery, on Bitcoin ETF In-Flows, AI Tokens, DePIN, Aidrops, and 2024 Crypto Market Cycles

Lark Davis, Founder of Wealth Mastery, on Bitcoin ETF In-Flows, AI Tokens, DePIN, Aidrops, and 2024 Crypto Market Cycles

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Lark Davis, Founder of Wealth Mastery, on Bitcoin ETF In-Flows, AI Tokens, DePIN, Aidrops, and 2024 Crypto Market Cycles

Sead Fadilpašić

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| 8 min read

Lark Davis, Founder of Wealth Mastery, on Bitcoin ETF In-Flows, AI Tokens, DePIN, Aidrops, and 2024 Crypto Market Cycles | Ep. 316

In an exclusive interview with Cryptonews, Wealth Mastery founder Lark Davis talked about the massive relevance of Bitcoin and Ethereum ETFs, current results, and their potential effects.

Davis further touched on airdrops, major crypto trends, and where we are in the market cycle.

Lastly, he shared some price predictions with the host Matt Zahab and the Cryptonews Podcast audience.

In this interview, Davis discussed:

  • Bitcoin ETF: current results and its long-term importance;
  • Ethereum ETF: its approval and potential outcomes;
  • Airdrops 101: what they are they, how safe they are, and how to get involved;
  • March 2024 crypto trends: AI, Bitcoin20 tokens, DePIN, gaming, and real-world assets;
  • Cycles in the market: our current position in the cycle;
  • Price predictions: when to sell, how to sell, and what to sell.

Expect the ‘Mania Phase’ in 2025


Davis – who has 1.1 million followers on Twitter and 519,000 subscribers on YouTube – stated that everybody predicting the market movements is basically guessing by basing opinions on existing models.

Now we are seeing a relatively standard four-year cycle playing out, with a few notable differences so far.

However, per the investor,

“We’re looking at probably 150K to 200K potentially at the top. […] In that theory, we see markets topping out late 2025.”

The higher the price go, the riskier it is to click the buy button, he warned.

Moreover, spot Bitcoin exchange-traded funds (ETFs) are exciting, but they’re just a new spark of liquidity for this market cycle, said Davis.

Nothing new. It’s the equivalent of MicroStrategy back in 2020, he added.

Notably, people buying ETFs today are not locked in. They can sell at any time.

Per Davis,

“Around $200K, $215,000, they’re gonna start selling. And that’ll be the big story of late 2025 in the four-year cycle theory idea. […] That’ll be when markets start going down. It’ll be a mania phase.”

This is still uncharted territory, as we can’t tell how much money will keep flowing in and for how long.

However, even if companies providing ETFs start exiting, there’s still be money coming in “because that’s when retail FOMO mania is happening and people are aping in at the top,” Davis noted.

Bitcoin ETFs Are Huge – Yet Just a Tiny Part of the Picture


Davis said that the crypto price action we’re seeing is “exciting, it’s fun.”

But what happens today or the next few days is a lot less interesting than where we are in the cycle and what the implications of the Bitcoin ETF actually mean for the market.

We’ve had some “incredible weeks” for the ETF, and we’re seeing “incredible” numbers already.

But even if we’re observing future performance conservatively – just half of what we may actually expect to see – we’re still looking at $50 million a day.

That’s still $11 billion of fresh inflows this year alone, said the investor.

“That’s insane. […] This is a dramatic amount of cash money entering Bitcoin. And this has a huge impact.”

And that’s just the start of the story, Davis remarked.

The Hong Kong Bitcoin ETFs are on their way, and South Korean Bitcoin ETFs are likely coming in the near future.

“The wild thing about Bitcoin ETFs” is that they’re only “a tiny part” of the whole picture.

Another piece is all the other fiat on-ramps that have enabled millions of people to gain access to Bitcoin.

“You have to understand how big the on-ramp gateway has been opened up for crypto in this cycle. It’s insane.”

A lot of that is focused on Bitcoin, but Bitcoin is where the money starts entering the market, the investor said.

People buy BTC and start looking further. “And that’s where things start getting crazy.”

BlackRock: Deal With the Devil


BlackRock, the world’s top asset manager, is shattering records with its Bitcoin ETF, IBIT.

However, it’s a hard company to understand, Davis warned.

They are “wildly powerful and wildly influential,” but they are not a friend in the crypto space.

Per Davis,

“BlackRock getting into Bitcoin, it is a deal with the devil, make no mistake. Because BlackRock is not our friend. BlackRock’s not here for the Satoshi revolution. They’re not here to fix the financial system. None of that stuff. They’re here for a buck. They’re here for power. They’re here for control. They’re here to help corner supply.”

The company is looking to seize control over this market.

For example, while a lot of “crazy” was happening back in 2022, and many left the market, what did BlackRock do? It launched a spot Bitcoin private trust for institutional clients in the United States.

They allowed their high-net-worth individual investors to start getting Bitcoin a full year before they launched their public Bitcoin ETF.

They’ve been bullish on Bitcoin for a long time.

Therefore, argued the investor, Wall Street is slowly moving over.

Ethereum ETFs Will Be Very Popular


It’s well known that the US Securities and Exchanges Commission (SEC) had their hand forced to approve Bitcoin ETFs.

They either had to approve it, Davis said, or admit that they were wrong on all the other ETF products they had approved. And they would never admit they’re wrong.

Also, there’s the Chair Gary Gensler element as well. “If he spits in BlackRock’s face, he’s not going to have a job anywhere” after the SEC, said Davis.

Therefore,

“The exact same legal precedents that worked for the Bitcoin ETF exactly apply to the Ethereum ETF. So that means that likely May 23 will be the day that we get an Ethereum ETF.”

This date is the first final deadline for the Ethereum ETF approval when the SEC has to say ‘yes’ or ‘no,’ and they don’t have any grounds to reject it.

Moreover, like with the Bitcoin ETF, “they’ll probably drag it out to the last second because they’re children. But it’s going to come.”

That will be massive for the markets because BTC and ETH are the top two cryptocurrencies, which together account for 60-70% of the total market cap.

Also, if we consider everything that the Ethereum ecosystem encompasses, everything built on top of it, “it’s more like 80% of the total crypto market space will be available for people to buy for TradFi money in a very easy way.”

Hence, a lot of money will be able to enter the crypto market easily.

Finally, Ethereum is an excellent product for Wall Street, Davis said. No matter what they are bullish on – be it stablecoins, gaming, NFT, or DeFi – Ethereum’s got it all.

And “here’s the kicker bonus”: they will get a dividend payout, unlike from holding Bitcoin. “It’s going to be popular,” said Davis.

Warning! Be Careful of AI Buzzwords and Bovine Feces


Davis said he’s been covering all sorts of narratives since he started making content back in 2017.

And there’s no new narrative today.

However, the difference is that we might be reaching an inflection point with the cryptocurrency markets, “where we actually see some of this stuff taking off and getting real-world adoption.”

This was missing in previous years. People had the right ideas but at the wrong time, Davis said.

But when it comes to the currently popular AI coins in particular, Davis warns:

“Be careful of the buzz, […] buzzwords, a lot of bullshit, and a lot of hopes and dreams and promises that are never going to come true with these new startups working in the AI space in crypto.”

A lot of companies in crypto will switch quickly to whatever the popular trend is at the moment and claim that they’ve been doing that all along.

People have to really dig in, check out the teams’ track records, partnerships, and other details, “and really ask yourself if what they’re proposing is realistic.”

DePIN AI Coming Together is Very Exciting


However, there are also lots of great AI projects and innovative ideas.

Davis is particularly interested in the infrastructure side of it.

One exciting possibility is AI joining hands with DePIN, he noted.

DePIN on its own is a really big idea, enabling users to get rewarded for doing daily things.

Per Davis,

“One of the most exciting intersections for me, DePIN an AI, that’s where we’re seeing these really come together in a very fruitful and interesting way.”

However, a key thing is to decentralize the infrastructure networks that are training the AI models.

This is where crypto can come in and provide us with a freer AI, a utopian AI rather than a dystopian one.

If There’s Money, Airdrops Will Come


The airdrop trend will continue as long as people can make money on it, which could be for quite a while, Davis argued. At least as long as the bull market lasts.

He argued that,

“Airdrop right now are the exact same kind of impactful money making meta we’re seeing in 2024 as we saw back in 2020 with DeFi Summer, very similar parallels.”

Ethereum Layer 2 Blast – created by the team behind the NFT marketplace BLUR – has been the talk of the cryptotown lately. Introduced on November 21, its total value locked is already nearing $3 billion.

 

The much-anticipated Blast airdrop is set for May 2024.

By then, we’ll still be in the “airdrop town without a doubt,” said Davis.

Notably, airdrops are infusions of liquidity into the market. And this one could be a massive capital injection to the market “that just makes everything pop.”

Blast is a self-fulfilling prophecy, he added. “Everybody wants to be there.”

But the team has delivered on Blur, and they are “probably going to deliver on Blast.”

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About Lark Davis

Lark Davis is the Founder of Wealth Mastery, one of the most famous newsletters in crypto.

He is also an Entrepreneur, an investor, and a prominent figure in the cryptocurrency community, widely recognized for his expertise and contributions as an analyst, educator, and influencer.

Known online as @thecryptolark, Lark has garnered a significant following on social media platforms, including Twitter and YouTube.

He utilizes these platforms to share comprehensive market analyses, educational content, and insights into the latest trends and developments in the blockchain and cryptocurrency sectors.

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