BitcoinBTC, ethereum and other major cryptocurrencies have swung wildly over the last month, hit this week by a shock warning revealed by Coinbase’s chief executive.
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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 XRPXRP developer Ripple claiming a surprise victory over the U.S. Securities and Exchange Commission (SEC).
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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its recent rally has stalled, weighing on the price of ethereum, XRP and other cryptocurrenices.AFP via Getty Images
“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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last few years but has swung wildly, along with the price of other major cryptocurrencies ethereum and XRP.Forbes Digital Assets
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.
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I am a journalist with significant experience covering technology, finance, economics, and business around the world. As the founding editor of Verdict.co.uk I reported on how technology is changing business, political trends, and the latest culture and lifestyle. I have covered the rise of bitcoin and cryptocurrency since 2012 and have charted its emergence as a niche technology into the greatest threat to the established financial system the world has ever seen and the most important new technology since the internet itself. I have worked and written for CityAM, the Financial Times, and the New Statesman, amongst others. Follow me on Twitter @billybambrough or email me on billyATbillybambrough.com.
Disclosure: I occasionally hold some small amount of bitcoin and other cryptocurrencies.
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