Mark Yusko: "Fair Bitcoin Price is $50,000"
Date: 2024-01-17 Author: Dima Zakharov Categories: BUSINESS
Importance of Bitcoin Spot ETFs
Mark Yusko acknowledged that the introduction of cryptocurrency exchange-traded funds (ETFs) linked to Bitcoin in the United States is a significant step towards its widespread adoption. However, he expressed concerns that the average investors, especially baby boomers born between 1946 and 1964, may lack the technical knowledge to understand the intricacies of "triple-entry accounting." Yusko highlighted that cryptocurrency exchanges like Coinbase and Kraken simplify the Bitcoin buying process for investors.
Volatility and Bitcoin
Responding to concerns that a Bitcoin spot ETF might reduce the volatility of the leading cryptocurrency, Yusko stated that this is a natural process linked to the maturation of the crypto market. He reminisced about Bitcoin's early days, noting that its growth from an experimental project to an established asset class naturally leads to reduced volatility. In Yusko's view, volatility is an inherent aspect of Bitcoin.
Bitcoin Price Predictions
Yusko reaffirmed his previous forecast regarding Bitcoin's price. He estimated that the fair value of BTC should currently be around $50,000, and by the time of the next halving event, Bitcoin will approach this level to ensure miners remain profitable. After the reduction in mining rewards, Bitcoin's fair value could double, and by 2024, Yusko predicts that BTC's price will reach a six-digit range, with less dramatic price swings compared to previous cycles.
Ethereum ETF Approval
Regarding the possible approval of an Ethereum spot ETF, the CEO of Morgan Creek Capital refrained from making overly optimistic predictions. The process of approving an ETF for Ethereum might be more complicated, as the stance of the U.S. Securities and Exchange Commission (SEC) that Ethereum is not a security could change. Thus, Yusko concluded that the chances of approval for Ethereum-linked exchange-traded funds are less than 50%.
In the past, the founder of Morgan Creek Capital has stated that the world will eventually adopt Bitcoin, especially in countries with devaluing national currencies.
