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Morgan Creek CEO predicts Bitcoin surge fueled by $300B from institutions



Mark Yusko, the founder, CEO, and CIO of Morgan Creek Capital Management, LLC, a well-known investment expert, has boldly predicted the future of Bitcoin. In a recent discussion on the Paul Barron Network, he stated that Bitcoin’s price typically increases by ten times following a “halving” event.

The Bitcoin protocol includes a pre-programmed feature that causes a halving event to occur approximately every four years or after every 210,000 blocks are mined. This event halves the block rewards for miners.

The reward, initially set at 50 bitcoins for each block, has undergone multiple halvings and currently stands at 6.25 bitcoins. The upcoming block will yield 3.125 BTC as its reward. This diminishing mining compensation effectively reduces the speed at which fresh bitcoins are generated, introducing scarcity and potentially fostering heightened demand.

The halving mechanism embedded within the Bitcoin protocol serves a vital function in regulating the supply of Bitcoin and limiting inflation. By controlling the total number of bitcoins that can ever be created at 21 million, the protocol ensures that no more than this finite amount of bitcoin will ever be in circulation.

Mark Yusko’s analysis suggests that the next Bitcoin halving event, scheduled for April 2024, could potentially trigger a significant increase in the cryptocurrency’s price. Yusko points to past patterns in which the previous halving event led to a surge in Bitcoin’s value and suggests that this cycle may repeat itself.

According to Mark Yusko’s analysis, Bitcoin’s price has historically experienced substantial increases from $100 to $1,000 and then from $1,000 to $10,000 following past halving events. He uses this trend to extrapolate that the cryptocurrency’s “fair value” is currently around $100,000, despite its current trading price of $26,000.

Mark Yusko’s use of the term “parabolic blow-off top” refers to a pattern that occurs after each Bitcoin halving.

Yusko anticipates that spot Bitcoin exchange-traded funds (ETFs), particularly those based on spot prices, will secure regulatory clearance, possibly by late 2023 or the early months of 2024. This approval is poised to set off a substantial influx of capital into the crypto market.

Additionally, his estimation suggests that approximately $300 billion might find its way into Bitcoin once a spot-based ETF is approved

According to the founder of Morgan Creek Capital, a significant proportion of the Bitcoin supply is either dormant or held by long-term investors. Given this, he believes that an influx of $300 billion would have a major impact on the price of Bitcoin, taking into account the limited amount of Bitcoin that is available for trading.

Mark posited that with only $100 million of free float, an additional $300 million in investment would drive the price of Bitcoin up significantly

Last month, Yusko told Michelle Makori, Lead Anchor, and Editor-in-Chief at Kitco News that he is optimistic about Bitcoin’s future, citing two main catalysts that could potentially cause Bitcoin’s price to increase by as much as 410%

The first catalyst that Yusko identified is the growing adoption of Bitcoin by institutional investors. He believes that as more institutional investors come on board, the demand for Bitcoin will naturally increase.

The CEO drew a comparison between the growth of Bitcoin and the early days of the internet when many people were initially skeptical of the new technology. However, over time, the internet became widely adopted.

The second catalyst identified is Bitcoin’s potential to become a global reserve asset. In times of economic turmoil, countries often seek to diversify their assets and reduce their exposure to risks associated with fiat currencies. Bitcoin’s limited supply and decentralized nature make it an attractive option.

In the past, Yusko has expressed an extremely bullish outlook on Bitcoin’s future, suggesting that its market capitalization could eventually rival that of gold, implying a price of around $300,000 per Bitcoin.

Yusko argued that Bitcoin’s ease of transfer and portability give it a significant advantage over gold. According to him, not only is it plausible for Bitcoin to achieve the same market cap as gold, but it’s also a logical choice.

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