The bitcoin price is once again trading above the $12,000 level, and the current market cycle could take the price to a new all-time high. Morgan Creek Capital Management CEO Mark Yusko was featured on CNBC, where he emphasized that bitcoin is the best-performing asset since October 2018 by a long shot.
“I think we’re in the next parabolic move. That will take us probably into the $30,000 level before we get another little correction.”
He points out that the bitcoin price has soared 70 percent since October 2018, while the stock market over the same period is about flat with those levels. Yusko, who previously ran an endowment fund, didn’t stop there, suggesting that bitcoin’s “path to $100,000 by 2021 is really quite easy to draw out.”
That’s about a 733 percent increase over the next couple of years, which is unheard of in other asset classes.
Yusko’s bullish price prediction is not even the most aggressive one out there, with billionaire venture capitalist Tim Draper attaching a $250,000 price target on the biggest cryptocurrency in the next few years. Draper expects that at the pace that engineers are currently working on bitcoin’s scalability issues, the leading crypto could be used instead of the dollar for everyday purchases in as little as two years.
Economy’s Pain Is Bitcoin’s Gain
Bitcoin has been looking attractive from both a fundamental and technical perspective, with catalysts such as institutional adoption and price momentum helping to fuel the gains. Crypto could also be benefitting from the slowing global economy, the uncertainty of which stands to drive investors into the arms of bitcoin.
For example, the U.S. and China still haven’t settled their trade differences, and there’s no guarantee that they will reach an agreement recent progress notwithstanding. Meanwhile, some are saying that EU is already in mired a “mild recession” while that the U.S. is headed for one, too.
Morgan Creek’s Yusko is of the belief that it’s doom-and-gloom for the stock market, saying that stocks are “overvalued” and any upcoming interest rate cut is a sign of a weak economy, not a strong one.
As Morgan Creek’s Anthony Pompliano points out, not only has bitcoin been outperforming stocks but also its chief rival as a store of value, gold.
“Bitcoin’s price appreciated 55% during May, but more interestingly, the asset had a negative correlation to the S&P 500 (-0.9%) and gold (-0.8%). That means that as stocks and gold became less attractive, Bitcoin was becoming more attractive.”
Yusko didn’t attach a time frame on his $30,000 price prediction. Another Wall Street veteran, Mike Novogratz, has previously said he expects bitcoin to be range-bound for a while between $10,000 and $14,000.