After falling $4,000 in a matter of 48 hours two weeks back, bulls seem to be ready to push Bitcoin (BTC) higher once again. As of the time of writing this, BTC is up 5% in the past 24 hours, finding itself changing hands for over $13,000 apiece.
Speaking to CNBC, Mark Yusko, an institutional investor-turned-crypto bull and fund manager, suggested that the cryptocurrency has room to run up to $30,000 prior to a dramatic correction. A move to $30,000 would mean Bitcoin would have to gain 133% from where it is today.
$30,000 Soon, $100,000 by 2021
According to Yusko, Bitcoin could hit $30,000 without a strong, extended correction due to it being in a parabola in his eyes. Indeed, over the past few months, the world has seen BTC skyrocket higher, making gains that have made institutional investors jealous, all while many mainstream assets have relatively stagnated amid fears of an impending recession.
Bitcoin bull @MarkYusko says the cryptocurrency could hit $30,000 before the next major pullback pic.twitter.com/JHPY4cc59x
— CNBC's Fast Money (@CNBCFastMoney) July 8, 2019
The fundamental reasoning for a parabolic move to $30,000 wasn’t exactly explained, by Yusko’s peer at Morgan Creek Digital Assets, Anthony “Pomp” Pompliano claims that irresponsible fiscal policy and institutional involvement will be primary drivers for BTC in the years to come.
Back to CNBC’s interview. Yusko continued after dropping $30,000 that Bitcoin could reach $100,000 by 2021. As was written in a newsletter, Pompliano is 75% confident in this prediction, and it can be assumed that Yusko is too. Six figures may seem irrational for an asset that you can’t even touch, but the duo are confident that Bitcoin’s block reward reduction will have a monumental effect on the supply-demand economics of this nascent market.
$400,000 Eventually? What?
It is important to note that according to Yusko, $100,000 isn’t the endgame for Bitcoin. Far from, in fact.
During an interview with BloxLive TV, a crypto-centric outlet, the Morgan Creek founder suggested that BTC could appreciate to anywhere between $400,000 to $500,000 in due time. This seemingly out-of-left-field price target was calculated by taking the market capitalization of gold and dividing that by the approximate amount of Bitcoin there will be in a decade or two.
You see, like Grayscale Investments, Yusko & Co. believe that Bitcoin acts as a better store of value than gold. Firstly, the level of retail investor interest in gold should theoretically decline with time, as digital technologies force physical monies and assets out of existence. And secondly, as Yusko explains, Bitcoin is much easier to transport, divide, and transact than gold, meaning that as long as fundamentals drive price, much of the precious metal’s value should be siphoned into cryptocurrency.
As Grayscale would quip, “bye gold, buy Bitcoin”.
Not The Only “Mainstream” Bitcoin Bull
Yusko wasn’t the only staunch Bitcoin proponent lauding this asset class on live television. The next day, CNBC’s “Power Lunch” segment called on Tom Lee, the co-founder of Fundstrat Global Advisors, to talk up Bitcoin.
As a result of the seeming irrationality of Bitcoin’s recent swing to the upside, the CNBC anchors questioned the markets analyst about his thoughts on the catalysts behind the move higher. Like Morgan Creek’s partners, Lee focused his sights on fiscal policy. He told the outlet and its viewers that the Federal Reserve’s and other central banks’ renewed attempts to cut rates and ease the economy will be a tailwind for BTC. You see, in the short term, easing is a boon for Bitcoin, as lower interest rates help money flow into assets deemed “risky”. And in the long run, easing policies increase the chances of bouts of hyperinflation, which will undoubtedly be an event that validates Bitcoin entirely.
So many positive factors supporting higher $BTC and macro factors, #MMT and global central bank easing is a tailwind.
If past instances of Level 10 FOMO (3% of price history), #bitcoin easily surpasses $20k all-time. #BTD
Cc:@MelissaLeeCNBC @ScottWapnerCNBC @PowerLunch https://t.co/Hb2wRd1wGc
— Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) July 9, 2019
Lee also noted that the previous time BTC passed $10,000, it reached $20,000 just weeks later. He expects for a similar turn of events to play out now, despite how irrational that may sound.
