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Mark Yusko, the founder of investment firm Morgan Creek Capital, believes that there are two potential catalysts that could push the price of Bitcoin to all-time highs. Here is Yusko’s noteworthy analysis of Bitcoin and the target level he expects the price to reach.
Potential 410% Increase in Bitcoin Price
According to hedge fund manager Yusko, Bitcoin will rise after the potential approval of a spot-based Bitcoin exchange-traded fund (ETF) and the upcoming block reward halving expected to occur in April 2024. He stated:
“I believe that a fair value for Bitcoin after this block reward halving would be $100,000. So, the fair value that is currently $55,000 will reach $100,000 in the coming months of April, May, and June, but we won’t stop at $100,000. We will reach $100,000 and then there will be speculation. How much speculation will there be? It depends on the approval of this spot Bitcoin ETF, when it will be approved, where we are in the adoption cycle, and how much of the $300 billion will come in. It also depends on the leverage that allows people to increase their purchasing power, and I believe that leverage will be lower this time. Let’s say we surpass $100,000 and reach $150,000. I find it very reasonable for something like this to happen. So, the target level is somewhere between $100,000 and $150,000.”
Bitcoin is currently trading at $29,373 at the time of writing this article. A move towards Yusko’s upper range target would mean a 410% increase in the price of the largest cryptocurrency.
Financial Advisors Could Propel Bitcoin
Morgan Creek Capital also claimed that US financial advisors who use ETFs control $30 trillion and allocating 1% of their portfolios to Bitcoin could have a significant impact on the largest cryptocurrency. They stated:
There is a $30 trillion market consisting of advisors who use ETFs. Let’s say they allocated 1% of their portfolios. That means $30 billion. It’s not that much, and it won’t move the price of a $500 billion asset. This is not a $500 billion publicly traded asset. Publicly traded assets may be around $100 billion. So, $30 billion will increase the price.
Of course, the allocation rate may not be 1%. Even if everyone allocated 1%, due to its performance as the best-performing asset in the last three years, five years, and ten years since its inception 14 years ago, it doesn’t seem as high as it appears in dollars.
So, if I am an investor or have the trust of investors as an IRA (Individual Retirement Account), I may need to allocate a percentage to Bitcoin if everyone is doing it. What if it’s 1%? Now we’re talking about $300 billion in circulation out of $100 billion. This will result in a significant movement.”
