Mark Yusko, founder and chief investment officer of Morgan Creek Capital Management, says he remains bullish on Bitcoin (BTC) despite the recent dip, due to a growing “fiat fiasco” happening worldwide.
In an interview on CNBC’s Fast Money, Yusko says he believes there’s a correlation between the falling interest rates across the globe and Bitcoin’s bullish run in 2020. He says the status quo is favorable to the crypto economy.
“In a world of rogue central bankers, Bitcoin is king. Interest rates around the world are all going to zero. All of them. US rates are going to zero, Chinese rates are going to zero. They’re all going to zero. It’s all because of demographics, deflation and too much debt.
You can’t pay back the debt. You can’t default on the debt, so you got to inflate it away by devaluing your currency. The central bankers are going to print – that is massively bullish for Bitcoin.”
Yusko says the leading cryptocurrency’s fundamentals are strong as the network approaches a so-called halving that will lower the rate of new supply entering the market by half.
“The best thing about the Bitcoin market today is the fundamentals. The fundamentals continue to increase and improve; adoption is growing; the number of wallets is up; the number of transactions is up; all the fundamentals really continue to get stronger.
And we also have the halving event coming up in May, and one thing it does is it compresses supply. There won’t be as many rewards every 10 minutes at every block.
Prices usually adjust around these events, so we see a lot of upward momentum through the mid-half this year. In the second half, you probably get to see a lot of the chasing that we saw back in ‘17, just like the chasing we see in the stock market today.”
The potential impact of the halving remains one of the biggest questions facing the crypto markets today.
While some are extremely bullish on Bitcoin as the event approaches in May, a number of crypto influencers including Coinshares chief strategy officer Meltem Demirors, warn that the reduced production of BTC may have little to no effect on the price.