Anticipation of the upcoming Bitcoin (BTCBTC) halving will be the main catalyst triggering a new crypto rally as early as Q2 2023, according to the hedge fund manager; Mark Yusko.
The halving mechanism, which halves Bitcoin’s mined block rewards every four years, has historically been a major catalyst for cryptocurrency gains. The next halving is expected to occur in early 2024.
“Normally the market is about nine months ahead,” Yusko said in a recent interview with Cointelegraph.
According to the hedge fund manager, the halving will push Bitcoin up to $100,000, and potentially beyond, “by mathematical laws.”
“If the block rewards are cut in half, from 6.25 to 3,125, the price has to double for miners to keep making money,” he stated.
Yusko believes the rebound will come despite an unfavorable macroeconomic outlook dominated by high interest rates and sluggish growth.
This is because, according to Yusko, digital assets will eventually become uncorrelated with stock markets.
“Traditional assets are driven by economic growth, Fed policies, inflation. Cryptocurrencies are driven by technology itself, millennial adoption,” Yusko explained.
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