Hedge fund manager Mark Yusko predicts that the worth of bitcoin will greater than double this year, to $150,000.
“Break even,” the CEO and chief investment officer of Morgan Creek Capital Management told CNBC’s “Fast Money” this week.
Yusko believes that investors must have no less than 1-3% of their funds allocated to bitcoin of their portfolios. “Bitcoin is king. This is the dominant token. It’s a better form of gold,” he said.
As of Thursday’s close, it was up about 159% over the past year. It topped $73,000 in early March, but on Thursday evening it was trading around $70,700.
“The law of large numbers comes into play. I think it could easily increase 10-fold over the next decade,” Yusko added.
It cites Bitcoin exchange-traded funds, which launched in January, as a significant component within the cryptocurrency’s growth. Yusko expects the Bitcoin halving to lead to a supply shock, leading to one other round of major antagonistic developments for the flagship cryptocurrency.
The halving, which will cut bitcoin mining rewards in half to limit supply, is anticipated in late April.
“An important move will take place after the halving,” Yusko said. “Toward the end of the year, things become more… parabolic. “Historically, around nine months after halving, around Thanksgiving and Christmas, we see prices peak before another bear market.”
Yusko also has exposure to an internet cryptocurrency trading platform. “We think big things are coming for Coinbase,” he said.
Coinbase shares are up nearly 321% over the past 12 months.
