Commenting on Bitcoin’s good performance in October, Mark Yusko, CEO of Morgan Creek Capital Management, commented that BTC is ready for a short-term pullback.
Mark Yusko, the company’s CEO and Chief Investment Officer, stated in a new interview with CNBC that Bitcoin is at risk of “buy the rumor, sell the news”.
“We saw the biggest example of this after El Salvador adopted Bitcoin as legal currency. There were big increases following that news, and small decreases occurred the day after the announcement. For this reason, a similar situation will occur after we learn which funds (Bitcoin ETF) are traded on the Bitcoin exchange close to October 27.”
Yusko stated that he would not be surprised if BTC experiences a “small consolidation” in its short-term future.
“Look, we’ve had a 40% increase this month and that’s in just 15 days, a 110% increase compared to last year, so it wouldn’t surprise me if there’s a ‘pause’ in an environment of such overbought.”
Yusko also highlights potential factors that could push the Bitcoin price higher once the narrative involving BTC exchange-traded funds (ETF) wears off.
“Bitcoin adoption is on the rise and so are the use cases. These numbers look really good. The hash rate has come back strongly after the news from China.”
The Morgan Creek CEO also referred to the stock-to-flow (S2F) model, which tries to predict the price of crypto by measuring the amount of new supply that enters the market each year compared to the amount of supply that already exists.
“There is an audience that thinks the $100,000 target can be reached by the end of the year. The S2F model also supports this.”
Bitcoin is trading at $61,949.33 at the time of writing, up more than 13% at the time of writing, according to CoinGecko.
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