In a recent interview with Kitco News, Mark Yusko, the founder of Morgan Creek Capital, shared his thoughts on the factors that could propel Bitcoin (BTC) to new all-time highs. Check out the latest reports about this below.
According to Yusko, the upcoming halving event and the approval of a spot-based Bitcoin exchange-traded fund (ETF) are two catalysts that could drive Bitcoin’s price surge.
Yusko believes that the fair value of Bitcoin could reach $100,000 after the halving event in June of next year.
However, he also suggests that the price could exceed that level due to speculation, which would depend on the approval and timing of the spot Bitcoin ETF and the adoption cycle.
Yusko predicts that the leverage will be lower this time around, so the price increase may be more gradual, ranging between $100,000 and $150,000.
At the time of writing, Bitcoin is valued at 29,373. According to Yusko, if Bitcoin reaches his upper range target, it could result in a 410% increase in price from its current value.
Yusko also emphasizes that US financial advisors who use ETFs control a staggering $30 trillion. He suggests that allocating just 1% of that towards Bitcoin would have a significant impact on its value.
Financial advisors invest 1% into BTC
Yusko explains that even if financial advisors only invest one-tenth of 1% ($30 billion) into Bitcoin, it would not be enough to move the price of a $500 billion asset.
This is because the free float of Bitcoin is only around $100 billion. However, if everyone invested 1%, which is not unreasonable given Bitcoin’s impressive performance over the past few years, it could result in a $300 billion investment into Bitcoin.
This would cause a significant increase in value as it would be 3 times the amount of free float. Yusko believes that this would be a huge move for Bitcoin.
As such, he suggests that investors and IRA fiduciaries may want to consider allocating a portion of their assets to Bitcoin, especially if others are doing the same.
