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The bitcoin price has almost doubled since dropping to recent lows late last year, helped by a shock BlackRock crypto flip and XRP
Now, the chief executive of hedge fund Morgan Creek Capital Management, Mark Yusko, has predicted the bitcoin price could soar to $300,000 by 2028, with next year’s supply cut kicking off a rally that will push it beyond gold’s $6 trillion market capitalization.
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The bitcoin price has doubled so far this year but its recent rally has stalled, weighing on the … [+]
“The monetary value of gold is about $6 trillion, I think bitcoin can replace all of that, the monetary equivalent of $6 trillion is about a 10X from here, which gives us a price of about $300,000 [per bitcoin],” Yusko told Coindesk, pointing to previous bitcoin supply cuts, known as halvings, as the catalyst for price rises.
“Every [bitcoin] halving, we’ve added a zero, and by next April I think we could go to $100,000,” Yusko said, adding bitcoin fixes gold’s problems of portability and divisibility and is “equally scarce.”
In April next year, bitcoin is expected to undergo its fourth halving, cutting the supply of new bitcoin being awarded to so-called miners who maintain the network to just over three, down from just over six currently.
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The bitcoin price has rocketed higher over the last few years but has swung wildly, along with the … [+]
Bitcoin and crypto watchers have long looked for signs of bitcoin trading alongside gold as a so-called safe haven asset that traders move into during times of increased risk.
“The cryptocurrency market has regained its cap to above $1.18 trillion, up 1.6% in 24 hours,” Alex Kuptsikevich, FxPro senior market analyst, said in emailed comments.
“The market’s initial rebound on buying back the most sagging assets was supported by the unexpected news of Fitch downgrading the U.S. long-term credit rating, which triggered an impulsive pull into bitcoin and gold.”
This week, Fitch, one of three major independent agencies that assess creditworthiness, cut the U.S. government’s credit rating due to concerns over the state of the country’s finances and its debt burden.