Morgan Creek Capital's CEO Mark Yusko predicts that Bitcoin (BTC) will soar to six figures in the coming months, citing the halving event and increased network effects. Yusko estimates a fair value of $50,000 based on the Metcalfe's Law model, which could rise to $100,000 post-halving due to the reduction in block rewards. He further projects a potential surge to $150,000 as FOMO drives the price to twice its fair value, with the peak of the bull cycle expected approximately nine months after the halving.
Morgan Creek Capital CEO Predicts Bitcoin's Surge to Six Figures
New York, New York - Mark Yusko, the co-founder and CEO of Morgan Creek Capital, has reiterated his bullish prediction that Bitcoin (BTC) will ascend to a six-figure valuation within the forthcoming months.
In a recent CNBC interview, Yusko asserted that Bitcoin could potentially triple in value from its current fair value estimate or double from its post-halving fair value. The seasoned hedge fund manager elaborated that Bitcoin's fair value is determined by the number of users and miners, essentially its network effects.
"We evaluate today's fair value using the Metcalfe's Law model, which yields approximately $50,000," explained Yusko. "The halving event, occurring in approximately three weeks, reduces block rewards, the remuneration provided to miners for securing the network. Historically, such reductions have led to price increases and an elevation in fair value, potentially propelling Bitcoin to $100,000."
However, Yusko acknowledged that the current market dynamics differ slightly. "Ordinarily, the halving primarily affects block rewards, but this time, transaction fees derived from ordinals and inscriptions are also a factor," he said. "Assuming a fair value of $75,000 post-halving, the surge in investor interest and FOMO (fear of missing out) could drive the price to twice its fair value, as has been observed in previous cycles."
"In the previous cycle, with a fair value of $30,000, Bitcoin reached a peak of $69,000," Yusko recalled. "Given the reduced leverage in the current market, I anticipate a similar multiple, resulting in a potential peak of $150,000."
At the time of writing, Bitcoin was trading at $70,882. Yusko projected that the peak of the ensuing bull cycle would occur approximately nine months after the halving.
"The halving event typically triggers a surge in demand, particularly from exchange-traded funds (ETFs) and other investors," Yusko said. "Concurrently, the supply of new coins diminishes, leading to an imbalance between supply and demand, which tends to drive price increases. The price trajectory becomes increasingly steep toward the end of the year, with the historical peak occurring around nine months post-halving, typically coinciding with the Thanksgiving to Christmas period."
