The year 2023 has started relatively well for the cryptocurrency industry. The market appears to be reeling from the unprecedented FTX crash, and major token prices are beginning to rise. BTC, one of the major tokens, is now worth $23,335; significantly higher than $16,547, which was its price at the end of 2022.
The community is optimistic and anticipates further gains in the crypto industry through various tokens. This is what Yusko has to say about it.
What is the Bitcoin halving and when is it next?
Bitcoin halving occurs when the reward for mining Bitcoin is halved. Every four years, the amount is halved. The halving policy was incorporated into the Bitcoin mining algorithm to combat inflation by preserving scarcity. In theory, a slower rate of Bitcoin issuance means that the price will rise if demand remains constant.
Since new Bitcoins are mined every 10 minutes, the next halving is expected in early 2024, when a miner’s payout will drop to 3,125 BTC.
Mark Yusko’s prediction for BTC
According to Mark Yusko, founder and CEO of Morgan Creek Capital Management, the Bitcoin bull market will likely start sooner than expected due to the anticipation of the BTC halving and favorable macroeconomic conditions.
Yusko believes that the next crypto bull run, or “crypto summer”, could start as early as the second quarter of this year due to a combination of dovish central bank policies and anticipation of the Bitcoin halving.
While the US Federal Reserve is unlikely to cut interest rates any time soon, markets, according to Yusko, tend to anticipate the Federal Reserve’s decisions. That means that even a slowdown or cessation of interest rate hikes would be taken as a sign of an impending pivot. This would create positive dynamics for all risk assets, including cryptocurrency.
What is Elon Musk’s point of view?
Elon Musk, in a separate Twitter post, stated that if the Federal Reserve raises interest rates, the chances of a recession intensify. According to the publication, “if the Fed raises rates again next week, the recession will be greatly amplified.” Elon Musk predicted that the recession would last until the spring of 2024.
If the Fed raises rates again next week, the recession will be greatly amplified
— Elon Musk (@elonmusk) December 9, 2022
This is clearly in stark contrast to Yusko’s view.
In conclusion
The Bitcoin halving is generally considered a good economic model because it puts disinflationary pressure on the digital currency, allowing it to appreciate in value over time. Yusko predicts that the halving can be beneficial for cryptocurrency prices and help the market.
It is exciting to see different perspectives and possible outcomes for the crypto market. We would love to hear your thoughts and opinions on the matter.
This post Morgan Creek CEO Predicts Early Start of Bitcoin Bull Run; this is why
was published first on https://coinpedia.org/news/morgan-creek-ceo-predicts-early-start-to-bitcoins-bull-run-heres-why/
