Mark Yusko has expressed a highly optimistic outlook for the cryptocurrency industry in 2024. He is the CEO and Chief Investment Officer of Morgan Creek Capital Management, an investment management firm that he founded.
In a recent interview on the YouTube series “The Dales Report,” Yusko highlighted several key factors that he believes will contribute to making 2024 an exceptionally positive year for crypto.
- Celestial Alignment of Factors: Yusko pointed out what he describes as a “celestial alignment” of various cycles converging in 2024. This includes the four-year Bitcoin cycle, with the next halving event expected in April or early May, depending on block times. Such events, he says, have historically been catalysts for significant movements in Bitcoin’s price.
- Wave of Liquidity from ETF Approval: Another major factor Yusko mentioned is the anticipated wave of liquidity that could follow the approval of a spot Bitcoin exchange-traded fund (ETF). This development is expected to unlock substantial capital inflows into the crypto market.
- Economic and Monetary Policy Influence: Yusko also noted the potential impact of broader economic trends and monetary policies. He anticipates that a slowing economy might prompt the Federal Reserve to return to accommodative policies, potentially devaluing the dollar. Since Bitcoin is priced in dollars, this devaluation could lead to an increase in Bitcoin’s price.
- Technological Wave and Talent Influx: A significant technological wave is also on the horizon, according to Yusko. He highlighted the recent layoffs in Big Tech, which have released a large pool of talented individuals into the job market. Yusko believes that many of these individuals, possessing high levels of expertise and creativity, will start new companies, potentially fueling innovation in the crypto space.
- Human Creativity as a Driving Force: Yusko emphasized the power of human creativity as a fundamental force driving progress and innovation. He sees this influx of talent as a critical component that will contribute to the growth and evolution of the cryptocurrency industry.
In early December 2023, Mark Yusko appeared on CNBC, offering his insights into the cryptocurrency market. He suggested that part of Bitcoin’s recent price surge could be attributed to the expected approval of an Exchange-Traded Fund (ETF) around January 8, 2024, a date he whimsically referred to as the “King’s Birthday.” However, Yusko clarified that Bitcoin’s growth this year wasn’t just due to ETF speculation. He pointed out that the market was undervalued a year prior, especially after the FTX scandal, with Bitcoin’s fair value then estimated between $32,000 and $33,000. This valuation has since risen to the lower $50,000 range, reflecting a market correction to this fairer value.
Yusko also shed light on other cryptocurrencies like Ethereum, Solana, and Avalanche, describing them as platforms that provide developers with tools to create applications. This is in contrast to Bitcoin, which he sees as having established itself as a form of digital gold. He highlighted Bitcoin’s remarkable growth from its inception to a market capitalization of about $850 billion, approximating 20% of gold’s monetary value.
Introducing the concept of the “Truth Net,” Yusko marked 2024 as the beginning of a significant technological cycle that started in 1954. This cycle, according to Yusko, signifies a transition from trust-based systems to ones where blockchains determine truth. He views this as a crucial phase for blockchain application development, with substantial value accumulating at the protocol layer, a shift from previous web models.
Responding to skepticism from traditional financial figures like JPMorgan Chase & Co.’s Jamie Dimon, Yusko suggested that those reliant on conventional financial systems might resist blockchain technology. He drew parallels between blockchain’s potential disruption of financial services and the internet’s impact on media and commerce, emphasizing blockchain’s capacity for direct value exchanges without intermediaries.