Bitcoin’s Parabolic Rise on the Horizon as Institutional Capital Flows In, Says Mark Yusko
Morgan Creek Capital founder Mark Yusko believes that Bitcoin (BTC) is poised for a parabolic rise as institutional investors inject hundreds of billions of dollars into the cryptocurrency. Yusko explains in an interview that Bitcoin tends to increase its price by adding a zero after each halving event.
The Halving Cycle and Price Increase
Bitcoin’s halving cycle occurs every four years when Bitcoin miners’ rewards are halved. The next halving is scheduled for April 2024. According to Yusko, the top cryptocurrency could experience a 1.5x increase from its all-time high.
Yusko states that historically, each halving has added a zero to Bitcoin’s fair value. For example, Bitcoin went from $100 to $1,000, then from $1,000 to $10,000. Now, it could rise from $10,000 to $100,000. Currently trading at around $26,000, Bitcoin could experience a rapid increase towards its fair value.
In previous cycles, the fair value was around $30,000, but Bitcoin reached as high as $69,000 due to excessive leverage and speculation. However, Yusko believes that this time the increase may be limited to 1.5x.
ETF Approval and Capital Influx
Yusko predicts that Bitcoin exchange-traded funds (ETFs) will likely be approved by the end of 2023 or the beginning of 2024. This approval would pave the way for a significant influx of capital into Bitcoin.
If a spot-based ETF is approved, Yusko estimates that approximately $300 billion worth of capital could flow into Bitcoin. This influx of capital, combined with the majority of Bitcoin supply being held by long-term holders, could cause a substantial increase in BTC’s price.
Current Bitcoin Price and Closing Thoughts
At the time of writing, Bitcoin is trading at $26,567, showing a slight increase for the day. With the potential for institutional money to enter the market and drive up the price, Yusko’s prediction of a parabolic blow-off top for Bitcoin seems plausible.
Hot Take: Bitcoin Primed for a Parabolic Rise as Institutional Money Arrives
According to Mark Yusko, the founder of Morgan Creek Capital, Bitcoin is set for a parabolic rise as institutional investors pour billions of dollars into the cryptocurrency market. Yusko points to Bitcoin’s historical trend of adding a zero to its price after each halving event. With the next halving scheduled for April 2024, Yusko believes that Bitcoin could reach a fair value of $100,000. Furthermore, he predicts that once Bitcoin ETFs are approved, around $300 billion could flow into Bitcoin, causing its price to skyrocket. With these factors in play, Yusko’s forecast of a parabolic blow-off top for Bitcoin appears likely.
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