Mark Yusko, a Bitcoin Bull, Expects Danger at $60,000

A bitcoin bull is on the lookout for a pullback. Mark Yusko, a hedge fund manager, believes that investors would profit from the cryptocurrency’s recent quick rise. 

“A lot of people believe we’ll hit $100,000 by the end of the year. We should, according to the stock to flow model,” Morgan Creek Capital Management CEO and CIO said. He wouldn’t be surprised if there was some consolidation. They’re up 40% this month, and it’s only been 15 days. On Friday, Bitcoin surpassed the $60,000 level for the first time since April. Optimism over the progress of bitcoin ETFs fueled the positive trend.

“We’re thrilled that people understand that approval is likely imminent,” Yusko, who is also the managing partner of Morgan Creek Digital, said. Nonetheless, he is sceptical of the new performance’s long-term viability. Given how overbought we are right now, a pause that refreshes would not surprise me,” Yusko said. “There is a risk of buying the rumour and selling the news.”

Bitcoin $250,000?

According to Yusko, any profit-taking would last for a short time. He predicts that bitcoin will reach $250,000 in five years. It’s a typical case of supply and demand. “One of the great things about bitcoin as an asset is that it has a limited supply,” he explained. They know how many bitcoins will be created through the mining process every day for the next 140 years.

Yusko believes bitcoin’s market capitalization will equal gold in five years. “I believe bitcoin has replaced and will continue to replace gold.” It’s now digital gold,” Yusko observed. It’s an excellent store bargain. Part of his reasoning is around long-term deflation expectations. It’s a situation that’s rarely discussed as the world deals with rising inflation and a supply chain problem.

Yusko believes that rising price pressures are a consequence of the enormous global COVID-19 economic lockdowns. The likelihood of us experiencing a full-fledged inflationary phase, I think, is extremely low,” he said. We are in a deflationary death spiral, which is normal.” It has been going on for a few decades.” As primary causes, he mentions an ageing population and the impact of substantial viral aid efforts. We have a problem with demographics; there are too many individuals nearing retirement age.” “We’re in too much debt,” Yusko admitted. All of this contributes to deflation.