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