In a recent interview
with Melissa Lee on CNBC’s ‘Fast Money’, Morgan Creek Chief Investment Office Mark Yusko says he sees $30,000 as the next possible target for Bitcoin.
In a conversation that began focusing largely on the overvaluation of the S&P 500 and potentially dire effects of the imminent U.S. Federal rate cuts, Yusko went on to discuss his positive sentiment regarding the cryptocurrency market. The interview also covered the recent problems facing German financial giant Deutsche Bank and the likelihood of a government bailout, making comparisons to the 2007 global financial crisis.
Following losses that have led to massive internal restructuring, Deutsche Bank has begun cutting 18,000 jobs
across Europe, the U.S., and Asia. In one photo, a man leaves Deutsche Bank offices carrying a ‘Bitcoin’ branded bag. The scenes are reminiscent of the 2008 global financial crisis which prompted the invention of Bitcoin as a safe haven against future events.
Discussing the possibility of a U.S-China trade deal helping to boost the economy, Yusko wasn’t hopeful.
“The China trade deal’s been priced in four times already, so I think it’s ‘buy the rumor, sell the news’. I think the second problem is, there will be no China trade deal,” he said.
A positive case for Bitcoin?
As the global economy worsens through 2019, there has been much discussion
regarding the role of cryptocurrencies as a hedge against another financial crisis. Yusko doesn’t only see $30,000 as a short-term target for Bitcoin but believes $100,000 by 2021 is also likely.
Not everyone is so positive, though. As outlined by Ermos Kyriakides in an article
on Hackernoon, both retail investors and institutions need cash during a financial crisis and are likely to sell any high-risk investments like Bitcoin. Ongoing scams
continue to mire the market and without a significant increase in investor confidence, it’s unlikely Bitcoin will make gains during an economic collapse.
However, this year has seen a wave of important developments in the cryptocurrency industry that may well sway the market in its favor. With several institutional firms investigating the development of their own cryptocurrencies, we could see an increase in confidence from retail and investment industries. Kyriakides believes that with these developments in place once the next recession hits, “Bitcoin will thrive.”