Morgan Creek Capital founder, Mark Yusko, recently shared his insights on the future of Bitcoin in an interview. According to Yusko, Bitcoin is poised for a parabolic rise, driven by an institutional capital inflow of hundreds of billions of dollars. His analysis is based on Bitcoin’s halving cycle and the potential approval of exchange-traded funds (ETFs).
Bitcoin’s halving cycle, which occurs every four years, is a significant event where the rewards given to Bitcoin miners are halved, reducing the rate at which new Bitcoin is generated. Yusko highlights a pattern observed in Bitcoin’s price history: after each halving, Bitcoin tends to add a zero to its price. Following this pattern, Yusko suggests that the next logical step would be for Bitcoin to reach a fair value of $100,000.
Yusko also mentions the phenomenon of the “parabolic top” that tends to occur after each halving cycle. In the previous cycle, Bitcoin’s fair value was estimated at around $30,000, but it eventually rose to $69,000. Yusko suggests that this time around, Bitcoin could experience a 1.5-fold surge, indicating a more cautious market approach.
One of the key catalysts for Bitcoin’s rise, according to Yusko, is the potential approval of ETFs on Bitcoin. He predicts that these ETFs could gain regulatory approval by late 2023 or early 2024, leading to a massive influx of capital into the cryptocurrency space. Yusko estimates that about $300 billion could flow into Bitcoin after the approval of a spot ETF.
Yusko’s analysis offers valuable insights for investors and enthusiasts. While the cryptocurrency market remains highly volatile, his assessment suggests that Bitcoin’s journey to new heights may be well underway, thanks to institutional investment and a cautious market approach. Only time will tell if his predictions come true.
– Paul Barron Network Interview with Mark Yusko