Hedge Fund Veteran Mark Yusko Predicts ‘Face-Melter’ Crypto Rally, Says Bitcoin Has Bottomed Out
Morgan Creek Capital Management founder and CEO Mark Yusko believes that crypto already saw the worst of the bear market when Bitcoin (BTC) rallied near the $17,000 level this month.
In a new interview on the Thinking Crypto YouTube channel, Yusko says that the price of digital assets could still go lower amid a selloff following the much-hyped proof-of-stake merger for Ethereum (ETH).
The hedge fund veteran says the crypto markets have bottomed out and are now headed for the next bull cycle.
“I actually think crypto winter is over. I think we’re in crypto spring. I think we’ve seen the bottom.
That doesn’t mean we can’t test it again. That doesn’t even mean we couldn’t go a little lower than that, but I really think that the noisy relaxation of leverage in Bitcoin happened and I think we have a little bit of a follow-through here with a ‘buy the rumor, sell the news of the merger.
I think a lot of people thought that when the merger happened, suddenly everyone was just going to buy Ethereum.”
Yusko says that even if the Federal Reserve decides to continue raising interest rates, it will have a limited impact on global prices as the downturn hits nations around the world.
“My personal belief is that we’re in a recession. It’s a shallow 2001-style recession, not a depression. I think the Fed can tighten too much and break things, but here’s the thing, how many Fed hikes are coming to change the price of wheat coming out of Ukraine? It doesn’t matter, does it? It has nothing to do with it.
How many interest rate increases will change the price of natural gas from Russia to Europe? Doesn’t matter, you can hike 50 times, it’s not going to change the price of gas. They’re not going to lower the price of gas because they screwed you over.
How many rate hikes are going to change the Zero-COVID policy in China and fix the supply chain so I can actually trade in my car and get a new Kia?
Yusko says that should the Fed swing from its current stance on interest rates, this move could be positive for crypto.
“I think we are in a recession. I think because of that, the Fed will reverse. When they reverse, we’re going to have a face meltdown of a rally. I mean a face melter because the shorts are going to get burned and the amount of shorts in crypto is huge.”
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