Morgan Creek Capital Management Founder and CEO Mark Yusko believes the crypto has already seen the worst of the bear market when Bitcoin (BTC) slipped near the $17,000 level this month.
In a new interview on YouTube channel Thinking Crypto, Yusko said the price of digital assets could drop further amid a sell-off after the much-publicized merger with proof-of-stake for Ethereum (ETH).
The hedge fund veteran says crypto markets have bottomed out and are now on course for the next bull cycle.
“Actually, I believe the crypto winter is over. I believe we are in crypto spring. I believe we have seen the bottom.
That doesn’t mean we can’t retest it. That doesn’t even mean we couldn’t go a little lower than that but I definitely think the cathartic unwinding of leverage in bitcoin has happened and I think we have a bit of a follow up here with a ‘buy the rumour, sell the news about the merger.
I think a lot of people thought that when the merger happened everyone was just going to buy Ethereum.
Yusko says that even if the Federal Reserve decides to keep raising interest rates, it will have a limited impact on global prices as the recession hits nations around the world.
“My personal belief is that we are in a recession. It’s kind of a superficial 2001-style recession, not a depression. I think the Fed might overtighten and break things, but here goes, how many Fed hikes will change the price of wheat coming out of Ukraine? Doesn’t matter, does it? It has nothing to do with it.
How many tariff hikes will change the price of natural gas from Russia to Europe? It doesn’t matter, you could walk 50 times, it won’t change the price of gas. They’re not going to lower gas prices because they blew your barrel.
How many rate hikes will change China’s Zero-COVID policy and fix the supply chain so I can actually trade in my car and get a new Kia?
Yusko says that if the Fed changes its current stance on interest rates, the decision could be bullish for crypto.
“I think we are in a recession. I think because of this the Fed will back down. When they reverse, we’ll have the face of a rally. I mean a face melter because the shorts are going to get burned and the amount of shorts in crypto is huge.
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