According to Mark Yusko, CEO of Morgan Creek, Bitcoin (BTC) is unlikely to start a new long-term bullish cycle before 2024.
Bitcoin has shown signs of recovery in the past few weeks. After losing more than 50% of its value in the second quarter of the year, BTC is up 30% from its low of $ 17,622 recorded on June 18 according to TradingView.
With this, some analysts speculate that the asset will soon begin a new bullish cycle in search of new historical price highs, as seen in 2020 – 2022. This would be even more likely, in the opinion of the big names in the market, if the United States could control their inflation and reduce the current interest rate.
Mark Yusko, on the other hand, does not believe that an improvement in the international political-economic scenario can trigger a new bull market in cryptocurrencies. According to the head of the investment firm Morgan Creek, only the next halving of Bitcoin (BTC), scheduled for May 2024, will cause the euphoria needed to push the price of BTC to new highs.
The end of Crypto Winter
While he is not optimistic that a new bullish cycle will occur soon, Yusko is confident that Bitcoin will not reach new lows. According to the official, the cryptocurrency winter is over and the cryptocurrency industry is now in a spring that “could last for months”.
The Morgan Creek executive stresses that the arrival of the crypto summer and the new bullish cycle will be “in anticipation of the next halving in 2024”.
Expected every 4 years, halving is a mechanism that halves the rewards of miners on the Bitcoin network. Currently set at 6.25 BTC per block mined, this reward will increase to 3.125 BTC at the next halving.
Logically, this would significantly reduce the supply of the asset, naturally causing its price to rise if its demand remains the same or increases further. Indeed, the analysis shows that there is a strong correlation between Bitcoin’s reward halving and the start of its bullish cycles. The latest of these events took place in May 2020, and BTC gradually surpassed its all-time high in December of the same year. Furthermore, the bullish cycle has even materialized with an ATH of $ 69,000 in 2021.
Mark Yusko’s Bitcoin Predictions
This isn’t the first time the Morgan Creek CEO has made Bitcoin predictions. Last year, he predicted that the world’s largest cryptocurrency would hit $ 250,000 by 2026. However, Creek noted that the asset would experience high volatility on the way to that price.
Furthermore, he said he believes that BTC will eventually overtake gold and become the most valuable asset in the world. Currently, the capitalization of the precious metal is 11.26 trillion dollars.
If Bitcoin approaches this value, it would mean that its unit price will be over $ 500,000, well above the $ 23,000 currently seen.
All information on our website is published in good faith and for general information purposes only. Any action taken by the reader based on the information found on our website is entirely at your own risk.