Bitcoin could soar to $150,000 in 9 months? Countdown to April production cuts expected to strengthen again

Hedge fund manager Mark Yusko predicts that the price of Bitcoin will more than double this year, reaching $150,000.

"Starting from scratch," the CEO and chief investment officer of Morgan Creek Capital Management told CNBC's "Fast Money" this week.

Yusko recommends investors allocate at least 1% to 3% of their portfolios to Bitcoin. He believes that Bitcoin is the absolute trump card, the better form of digital gold, and dominates. As of last Thursday's stock market close, Bitcoin was up about 150% from last year. Bitcoin prices topped $73,000 in early March this year, but ended last week trading around $70,700. Yusko believes the law of large numbers is at work, and he expects Bitcoin to easily grow 10-fold over the next decade.

He sees the Bitcoin exchange-traded fund ETF, launched in January, as a major bullish driver for the cryptocurrency. Yusko expects the Bitcoin halving to cause a supply shock, giving the dominant cryptocurrency another major boost.

Countdown to halving

Bitcoin’s halving is expected to take place at the end of April, when Bitcoin mining rewards will be cut in half to limit supply. Historically, halvings have been the main catalyst for cryptocurrency rallies. The pre-programmed halving mechanism reduces Bitcoin’s block rewards by 50% every four years.

Morgan Creek executives pointed out that when the block reward is reduced from 6.25 to 3.125, for miners to continue to be profitable, the price of Bitcoin must rise. As prices increase, so does fair value.

Yusko added that this cycle may vary due to transaction fees. Therefore, he expects a post-halving fair value of $75,000 as investor interest will increase and FOMO sentiment will be in full swing.

He explained: “In the last cycle, fair value was $30,000 and we were valued at $69,000. This time, I think it’s probably double that because there’s less leverage. So we made $150,000.” Yusko said.

According to Yusko, if history repeats itself, Bitcoin could usher in a more bullish period in the months following the halving.He believes that Bitcoin could reach its projected peak of $150,000 approximately nine months after the April halving:

“When demand is greater than supply, prices are bound to rise. Therefore, prices start to rise. Prices may grow exponentially or parabolically at the end of the year, which based on historical data is approximately nine months after the halving. So, in Thanksgiving "We may see prices peak in the run-up to Christmas and Christmas and then enter the next bear market."

Meanwhile, other prominent figures have made similar bullish Bitcoin price predictions. The author of "Rich Dad Poor Dad" predicts that Bitcoin will reach $100,000 after the halving, while the British Standard Chartered Bank predicts that Bitcoin will reach $150,000 this year.

“The big changes happen after the halving,” Yusko said. “By the end of the year, it starts to get more parabolic. And, historically, it’s about nine months after the halving, so sometime around Thanksgiving, Christmas, we’ll see prices before the next bear market. Peak.”

Yusko's company is also involved in cryptocurrency online trading platform Coinbase. "We think big things are going to happen at Coinbase," he said. Shares of Coinbase have risen nearly 321% in the past 12 months.

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