Hedge fund manager Mark Yusko, in a recent interview with CNBC, opined that Bitcoin (BTC/USD) is trading at an overbought position right now and investors will start taking profits.
The Chief Executive Officer of Morgan Creek Capital Management argued that Bitcoin could hit a consolidation. He stated that the cryptocurrency has been in a bull position for some weeks, and it wouldn’t be a surprise if its price starts to fall.
I It’s difficult to sustain Bitcoin’s rally
After its heavy rally to over $60,000 earlier this year, Bitcoin hit a sharp decline, dropping to below $30,000 a few months ago. However, the world’s largest crypto asset by market cap has regained its momentum, crossing the $60,000 resistance level for the first time since April.
Yusko stated that Bitcoin has been bullish for a long time, and has been up by 40% in a matter of weeks. However, he argues that it may be difficult to sustain that level. “There is some risk of the buy the rumor, sell the news,” Yusko added.
Yusko says Bitcoin could hit $250,000 in five years
While many investors and analysts have predicted that Bitcoin could hit $100,000 before the end of the year, he is taking a less optimistic stance.
He, however, admitted that any profit-taking would be temporary, as the crypto asset could continue to climb after a slight consolidation. Yusko thinks Bitcoin may not stay long in the Bull zone but predicts the cryptocurrency could hit $250,000 within the next five years.
He says the prediction is based on the long-term deflation prediction, adding that the increased price pressures are a kneejerk reaction to the recent effect of the global Covid-19 economic lockdowns.
He also thinks that Bitcoin will grow massively in the years to come, equating gold by market cap within five years. Yusko also believes that Bitcoin is now digital gold and is now the perfect store of value.
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