Mark Yusko, founder of Morgan Creek Capital, makes an interesting prediction about the future course of Bitcoin BTC. In an interview with the Paul Barron Network, Yusko makes some important points. Accordingly, he discusses the potential for a parabolic rise in Bitcoin’s price with the influx of institutional capital.
Historical course of Bitcoin BTC
Yusko points to a historical pattern in Bitcoin’s price movement that tends to follow the halving process. Bitcoin halving occurs approximately every four years. It also reduces miners’ rewards. The next halving is planned for April 2024.
According to Yusko, Bitcoin has historically added a zero to its price after each halving event. For example, it went from $100 to $1,000, then from $1,000 to $10,000. Based on this model, he predicts that Bitcoin could experience a 1.5x increase from its previous all-time high.
Potential path to $100,000
Yusko states that the fair value of Bitcoin is around $100,000. On the other hand, he emphasizes that it is currently traded at $ 26,000. This suggests a rapid rise to fair value. Investors often look for assets that are trading below their fair value. However, Yusko also predicts a parabolic breakout peak following the next Bitcoin halving, similar to those that occurred after previous halvings.
In the previous cycle, Bitcoin’s fair value was around $30,000, but it rose to $69,000 due to excessive leverage and speculation. Yusko does not expect a 2-fold or 2.5-fold increase this time. However, it projects a potential 1.5x growth from current levels.
Bitcoin ETFs and the flood of capital
Yusko expects Bitcoin exchange-traded funds (ETFs) to be approved in late 2023 or early 2024. Such approval could open the floodgates for a significant influx of capital into the cryptocurrency market. Once a spot-based Bitcoin ETF is approved, it is thought that as much as $300 billion of capital could flow into Bitcoin. This significant injection of capital, compared to Bitcoin’s limited free circulation, has the potential to raise prices significantly.
At the time of writing this article, Bitcoin is trading at $26,567. On the other hand, it shows a slight increase during the day. Although it remains below the $100,000 fair value predicted by Yusko, the cryptocurrency market continues to thrive. Additionally, when we look at cryptokoin.com, institutional interest will be an important driver of future price movements.
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