Morgan Creek Capital founder Mark Yusko says there is a parabolic rise on the horizon for Bitcoin (BTC) as hundreds of billions of dollars in institutional capital are set to flow in.
In a new interview on the Paul Barron Network, Yusko say that the king crypto tends to add a zero to its price after the halving process.
BTC’s halving cycle occurs every four years, when Bitcoin miners’ rewards are halved. The next one is scheduled for April 2024.
According to the hedge fund manager, the top crypto asset by market cap could see a 1.5x increase from its all-time high.
“To make a long story short: with every halving, a zero is added [in fair value]so we went from $100 to $1,000, then we go from $1,000 to $10,000, now we go from $10,000 to $100,000.
So the fair value is $100,000, and we are trading at $26,000. It’s a pretty quick rise to fair value. Investors buy things that are below fair value, but then what happens, in the fall after the halving, you get this parabolic blow-off top. In the previous cycle, the fair value was about $30,000.
We got to $69,000. That was because there was too much influence and too much gambling [speculation]. I don’t think we’ll go 2x or 2.5x this time. This time we were able to achieve 1.5x.”
According to Yusko, Bitcoin exchange-traded funds (ETFs) should be approved by late 2023 or early 2024, paving the way for a “major influx” of capital.
Yusko says he believes $300 billion of capital could flow into Bitcoin once a spot-based ETF is approved. The director of Morgan Creek Capital notes that the amount of expected capital inflows could send BTC’s price skyrocketing, as most of Bitcoin’s supply is idle or in the hands of long-term holders.
“$300 million on $100 million free float, the price goes up a lot.”
Bitcoin is trading at $26,567 at the time of writing, up fractionally on the day.
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