Mark Yusko: Once Fed Restarts QE, Crypto Market Will See ‘A Face Melter of a Rally’

Mark Yusko, the Founder, CEO and Chief Investment Officer of Morgan Creek Capital Management, explained in a recent interview why he believes that the Fed will soon need to stop its quantitative tightening program, which should bring in the next bull cycle.

Yusko, who is also the Managing Partner of Morgan Creek Digital, made his comments during an interview (on YouTube series “Thinking Crypto”) that was released on September 22.

According to a report by The Daily Hodl, Yusko said:

I” actually do believe crypto winter is over. I believe we’re in crypto spring. I believe we have seen the bottom. That doesn’t mean we can’t retest it. It doesn’t even mean we couldn’t go a little bit lower than that, but I really do think that the cathartic unwind of the leverage in Bitcoin happened and I do think we’re having a little follow through here with a ‘buy the rumor, sell the news’ about the merge. I think there were a lot of people that thought, when the merge happened, suddenly everybody was just going to buy Ethereum…

“My personal belief is we’re in recession.. I think the Fed could overtighten and break things… I think because of that, the Fed will reverse. When they reverse, we’re going to have a face melter of a rally. I mean a face melter because the shorts are going to get scorched and the amount of shorts in crypto is massive.“

Last month, Yusko said during a conversation with Scott Melker that the crypto industry needed to work towards simplifying crypto wallets in order to gain mass appeal. Yusko, who admitted to being a fan of hardware wallets, said many retail investors were being paralyzed by the choices offered by different crypto wallets. 

He noted several good options currently on the market, such as Ledger, but characterized mass crypto adoption as requiring a more simplified process. Yusko speculated that a company could work to build phone services on top of a crypto wallet, rather than the traditional method of doing it the other way around.

As reported by The Daily Hodl, he said:

“I just learned this the other day. There’s this thing called an ‘Enclave’ that IOS could open up and you could actually make it secure so you could hold digital assets without risk of crossing the air gap or something, again technology that I don’t really understand…

“IOS doesn’t want to do it. Samsung has, that’s why they still have wallets there or someone’s going to go the other way. They’re going to start with the wallet and they’re going to make all of the phone functionality on top of that. I think that’s actually the winner and maybe the Solana phone is the thing.“

Yusko also mentioned that a merging of smartphones and crypto wallets would provide much greater appeal to the average user, making it so crypto supporters would not have to care about complexities such as seed phrases and private keys. He continued, saying that making crypto wallets invisible and seamless would lead to “gazillions” of people adopting crypto.