The Morgan Creek CEO Mark Yusko, in an interview with Cointelegraph, said that the next bull market could begin as early as the second quarter of 2023, amid favorable macroeconomic conditions and expectations for halving of Bitcoin.
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According to him, the U.S. Federal Reserve is unlikely to cut the federal funds rate in the near term. However, even a slowdown or a pause in this process will be read as a positive signal for the cryptocurrency market.
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On February 1, the Fed raised the target range for the federal funds rate by 25 basis points, to 4.50-4.75% annually. Such a ‘soft’ increase proved to be the first since March 2022, when the agency began tightening monetary policy.
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In response to the Fed’s decision, Bitcoin rose to $24,000 for the first time since August 2022, according to CoinGecko. The cryptocurrency market capitalization exceeded $1.1 trillion.
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According to Yusko, the Fed signals stabilisation of the economy, which is perceived by the market as an intention to reduce the range of the federal funds rate. Such an interpretation would drive up risky assets, including cryptocurrencies.
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As an additional reason for a 2023 bull market, the Morgan Creek CEO pointed to expectations for Bitcoin halving. He believes the recovery of the digital assets market typically begins nine months before this event.
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As reported in December 2022, former BitMEX CEO Arthur Hayes said that Bitcoin had reached the bottom of the current cycle, as nearly all ‘irresponsible organisations’ had run out of BTC to sell.
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In the same month, BTCC co-founder and former head Bobby Lee suggested that the cryptocurrency bull market would only return by early 2025.