Bitcoin Bull Mark Yusko Sees Trouble for $60,000 and Says It’s Overbought

Texas News Today

Bitcoin bulls are on pullback watch.

Hedge fund manager Mark Yusko believes that investors will benefit from the sharp rise in the cryptocurrency over the past few weeks.

The CEO and CIO of Morgan Creek Capital Management told CNBC’s “Trading Nation” on Friday. “I wouldn’t be surprised to see a little bit of consolidation, look, we’re up 40% this month in just 15 days.”

On Friday, bitcoin crossed $60,000 for the first time since April. The bullish move stemmed from the excitement surrounding the progress of the Bitcoin ETF.

“It is clear that people know approval is imminent. We have been bullish on cryptocurrencies, especially bitcoin, for a long time,” Yusko, managing partner at Morgan Creek Digital, said.

Still, he doubts the stability of the latest demonstrations.

“Given how much more we’re buying right now, the fresh break doesn’t surprise me,” Yusko said. “There is a risk of buying rumors and selling news.”

Bitcoin $250,000?

According to Yusco, profits are temporary. He calls for bitcoin to reach $250,000 in five years.

“It is classic supply and demand. One of the good things about bitcoin as an asset is its limited supply,” he said. “We know every day how many bitcoins will be mined through the mining process in the next 140 years.”

Yusko estimates that the value of bitcoin by market capitalization is equivalent to gold in five years.

“I think bitcoin has replaced gold, and now it is digital gold,” Yusko says. “It’s the right store price.”

Part of his argument surrounds long-term deflationary forecasts. This is a rarely spoken scenario as the world deals with rising inflation and a supply chain crisis.

Yusko argues that the upward pressure on prices is a dire reaction to the massive global Covid-19 lockdown of the economy.

“I think it’s really unlikely that we’ll have a period of absolute inflation,” he said. “Usually we are in a death spiral of deflation. This has been going on for decades.”

He cites population aging and the impact of large-scale viral support measures as major catalysts.

“The demographics are poor and many people are reaching retirement age. Too much debt, ”said Yusko. “It all leads to deflation.”

Disclosure: Yusko owns Bitcoin, Ethereum, Gold and Coinbase shares.

Disclaimer

Source Link Bitcoin Bull Mark Yusko Sees Trouble for $60,000 and Says It’s Overbought

LEAVE A REPLY

Please enter your comment!
Please enter your name here