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Bitcoin Bull Mark Yusko Sees Problems At $ 60,000, Says He’s Overbought

By on October 17, 2021 0

A bitcoin bull is under surveillance.

Hedge fund manager Mark Yusko believes investors will turn a profit due to the strong rally in cryptocurrency over the past few weeks.

“A lot of people think we could hit $ 100,000 by the end of the year. The stock-to-flow model says we should,” Morgan Creek Capital Management CEO and CIO told Trading on Friday. Nation ”from CNBC. “I wouldn’t be surprised at a little consolidation either. Look, we’ve gone up 40% this month, which is only 15 days old.”

Bitcoin crossed the $ 60,000 mark for the first time since April Friday. The bullish move came on the excitement surrounding the progress on Bitcoin ETFs.

“We’re obviously delighted that people are recognizing that approval is likely imminent,” said Yusko, who is also managing partner of Morgan Creek Digital. “We’ve been bullish on cryptocurrency, and bitcoin in particular, for a long time. “

However, he wonders about the sustainability of the latest performances.

“A refreshing break considering how overbought we are right now wouldn’t surprise me,” said Yusko. “There is some risk of buying the rumor, of selling the news.”

Bitcoin $ 250,000?

Any profit taking would be temporary, according to Yusko. His call is for bitcoin to hit $ 250,000 in five years.

“This is classic supply and demand. One of the advantages of bitcoin as an asset is that it has a limited supply,” he said. “We know every day over the next 140 years how many bitcoins will be minted in the mining process.”

In five years, Yusko estimates that the value of bitcoin by market cap will be equal to gold.

“I think bitcoin has replaced gold and is replacing it. It is now digital gold,” Yusko noted. “It’s a perfect store value.”

Part of his reasoning surrounds a prediction of long-term deflation. This is a scenario that is rarely talked about as the world faces spikes in inflation and a crisis in the supply chain.

Yusko argues that the upward pressure on prices is a knee-jerk reaction to massive global economic lockdowns from Covid-19.

“The likelihood of us having a full inflation period, I think, is really, really low,” he said. “Normally we are in a deflationary death spiral. This has been going on for a few decades. “

He cites the aging of the population and the impact of massive aid measures against viruses as major catalysts.

“We have a bad demographics, too many people are reaching retirement age. We have too much debt,” Yusko said. “All of this leads to deflation.

Disclosure: Yusko owns Bitcoin, Etherium, Gold, and Coinbase stocks.


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