Morgan Creek Capital CEO Mark Yusko predicts that the price of Bitcoin could reach $150,000 by the end of the year, more than double its current price. He bases his prediction on Metcalfe’s law, which calculates the value of a telecommunications network based on its number of users. Yusko estimates Bitcoin’s fair market value to be $50,000, which could rise to $75,000 after factoring in the upcoming halving and increased transaction fees from Ordinals NFTs. He believes that during a bull market, Bitcoin tends to rise to double its fair value, leading to a potential price of $150,000 over the next 12 months.
Yusko points out that the most significant price movement in Bitcoin typically occurs after the halving event. He expects the price to become more parabolic towards the end of the year, with the peak likely occurring around Thanksgiving or Christmas, before the next bear market. This prediction aligns with Fundstrat analyst Tom Lee’s end-of-year price target of $150,000, who also sees the halving and introduction of U.S. Bitcoin spot ETFs as major bullish catalysts for Bitcoin’s price.
The upcoming halving event, expected to reduce the number of newly created bitcoins in each block from 6.25 BTC to 3.125 BTC, is seen as a supply shock that could positively impact the price of Bitcoin. This particular halving will also bring Bitcoin’s annual inflation rate below that of gold, positioning Bitcoin as a better investment compared to the traditional commodity. Yusko recommends that investors allocate 1% to 3% of their portfolio to Bitcoin, believing that the asset could still experience significant growth based on the “law of large numbers.”
Apart from Bitcoin, Yusko suggests that investing in Bitcoin mining firms could be a good opportunity, although their valuations may currently appear overextended. He, along with Bernstein, who also predicts a $150,000 price for Bitcoin, sees potential in the interest from institutional investors in Bitcoin equities. Morgan Creek Capital is also interested in other cryptocurrencies such as Ethereum, Solana, and Avalanche, believing that some smaller projects could witness significant price increases.
In conclusion, Mark Yusko’s prediction of a $150,000 price target for Bitcoin by the end of the year is based on math-based analysis and historical trends such as the halving events. He sees Bitcoin as a dominant asset that could outperform gold and recommends investors allocate a portion of their portfolio to the cryptocurrency. Additionally, Yusko highlights the potential in investing in Bitcoin mining firms and other cryptocurrencies beyond Bitcoin, indicating a positive outlook for the blockchain and cryptocurrency market in the coming months.
