Hedge fund manager Mark Yusko expects Bitcoin to more than double to $150,000 this year.
“Start from scratch,” the CEO and chief investment officer of Morgan Creek Capital Management told CNBC's “Fast Money” this week.
Yusko believes investors should allocate at least 1% to 3% of their portfolio to Bitcoin. “Bitcoin is the king. It's the dominant token. It's a better form of gold,” he said.
As of Thursday's stock market close, Bitcoin is up about 159% over the past year. It had topped the $73,000 level in early March, but was trading around $70,700 on Thursday evening.
“The law of large numbers comes into play. I think it could easily go up 10 times from here over the next 10 years,” Yusko added.
He cited the Bitcoin exchange-traded fund, which was launched in January, as a major bullish factor for cryptocurrencies. Yusko predicts that the Bitcoin halving will cause a supply shock that will once again provide a major tailwind for the flagship cryptocurrency.
The halving, which will cut Bitcoin mining rewards in half to limit supply, is scheduled for late April.
“The big move happens after the halving,” Yusko said. “Towards the end of the year it starts to go parabolic. And historically it's about nine months after the halving, so you'll see a peak in prices before the next bear market, somewhere around Thanksgiving or Christmas.” .”
Yusko's company is also involved in Coinbase, an online cryptocurrency trading platform. “We think big things are going to happen for Coinbase,” he said.
Coinbase stock has increased nearly 321% over the past 12 months.
Disclosure: Yusko's company owns Bitcoin, Ethereum, Gold, Coinbase, and Nvidia.
