Mark Yusko says that $300 million in capital will flow in with the approval of the Bitcoin ETF. In this Pooynamusic post, we want to see what effect Bitcoin ETF approval will have on its price?
Mark Yusko, founder of Morgan Creek Capital, says that a parabolic rise for Bitcoin (BTC) is inevitable. Because hundreds of billions of dollars of institutional capital are flowing.
In a new interview on Paul Barron’s Network, Yusko says that CryptoKing tends to add a zero to its price after the Haunig process.
The Bitcoin halving cycle occurs every four years when the reward for Bitcoin miners is cut in half. The next halving is expected for April 2024.
According to the manager of the hedge fund, the highest digital currency asset in terms of market value can have a 1.5 times increase compared to the highest level in history.
In short, each halving added a zero [in fair value]. So we went from $100 to $1000. Then we went from $1,000 to $10,000. Now we go from $10,000 to $100,000.
So the fair value is $100,000 and we are trading at $26,000. This is a very rapid increase in fair value. Investors buy things that are below fair value, but then what happens, in the fall after the halving, you get this parabolic cap. In the previous cycle, the fair value was around $30,000.
We reached $69,000. This was because there is too much leverage and too much gambling and [speculation]. I don’t think we will go 2 times or 2.5 times this time. This time, we will probably have 1.5 times.”
Bitcoin exchange-traded funds (ETFs) should be approved by the end of 2023 or the beginning of 2024, paving the way for a “massive influx” of capital, according to Yusko.
Yusko says he believes $300 billion in capital could flow into Bitcoin once the dot-based ETF is approved. Given that most of the Bitcoin supply is either dormant or in the hands of long-term holders, it could cause Bitcoin’s price to skyrocket, notes CEO Morgan Creek Capital.
$300 million in $100 million free float, so the price goes up a lot. At the time of writing, Bitcoin is trading at $26,567, a fractional increase on the day.