The year 2023 has started off relatively well for the cryptocurrency industry. The market appears to be recovering from the unprecedented FTX collapse, with major token prices 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 across various tokens. Here’s what Yusko has to say about it.
What is Bitcoin halving and when is the next one?
The Bitcoin halving occurs when the reward for Bitcoin mining is cut in half. Every four years, the amount is halved. The halving policy was incorporated into Bitcoin’s 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.
Given that new Bitcoins are mined every 10 minutes, the next halving is expected in early 2024, when a miner’s payout will be reduced to 3.125 BTC.
Mark Yusko’s prediction for BTC
According to Mark Yusko, founder, and CEO of Morgan Creek Capital Management, Bitcoin’s bull market will likely begin sooner than expected due to anticipation of the BTC halving and favorable macroeconomic conditions.
Yusko believes that the next crypto bull run, or “crypto summer,” could begin as early as the second quarter of this year due to a combination of dovish central bank policies and the anticipation of Bitcoin halving.
While the Federal Reserve of the United States is unlikely to cut interest rates anytime soon, markets, according to Yusko, tend to anticipate the Fed’s decisions. That means that even a slowing or halt in interest rate hikes would be interpreted as a sign of an impending pivot. This would create a positive dynamic for all risk assets, including cryptocurrency.
What’s Elon Musk’s POV?
Elon Musk, in a separate Twitter post, stated that if the Fed raises interest rates, the chances of a recession intensify. According to the post, “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.
Evidently, this is in stark contrast to Yusko’s opinion.
To conclude
In general, Bitcoin halving is regarded as a good economic model because it exerts disinflationary pressure on the digital currency, allowing it to appreciate in value over time. Yusko predicts that halving can be beneficial for the prices of cryptocurrency and help the market.
It’s exciting to see differing perspectives and potential outcomes for the crypto market. We would love to hear your thoughts and opinions on the matter.
Source: https://coinpedia.org/news/morgan-creek-ceo-predicts-early-start-to-bitcoins-bull-run-heres-why/