Hedge fund CEO Mark Yusko believes that the US stock market is “wildly overvalued”, while Bitcoin should reach $100,000 by the end of the year and “potentially even higher”.
In an article on Business Insider, Yusko talks of his concerns over the US stock market, saying that in spite of a number of worrying indicators, the market had continued to make all-time-highs practically every week.
He says that the main problem is the sheer amount of liquidity in the system after the Federal Reserve’s stimulus packages.
"I didn't think we could get to the insane levels of 2000, but we're rapidly getting there," Yusko said. " … I mis estimated how much tolerance there was for just ignoring reality, ignoring fundamentals."
Yusko believes that huge amount of stimulus being injected into the system is a ploy by the Federal Reserve to devalue the dollar, in order to better cope with the extremely high debt levels.
Yusko discovered Bitcoin and became a big fan, recognising that it was “a perfect storm of value”. He said that the fact Bitcoin is rising isn’t so much due to a better Bitcoin, but a worsening dollar.
The hedge fund CEO expects Bitcoin to reach $100,000 by end of year, and also expects it to remain the largest cryptocurrency. He also expects it to reach parity with gold, saying:
"We still think bitcoin will continue to rise, it will eventually achieve parity with gold, [it's] basically playing that role of digital gold right now," Yusko said. "And once that happens, we will have a market cap somewhere in the $4 trillion to $5 trillion range, which gives it that $250,000-plus price target."
For Yusko though, it isn’t all about Bitcoin. He sees that number one cryptocurrency as a base infrastructure layer, while he believes Ethereum will be like the www interface of the internet.
While recognising that his firm missed out on a lot of the decentralised finance projects, he is building positions in Polkadot, Solana, and Cosmos, seeing a lot of potential in all three.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.