2 Reasons Bitcoin Could 'Crash To Ground Level' According To Morgan Creek's Yusko

Zinger Key Points
  • A liquidation of GBTC, the largest Bitcoin fund, "would be very bad in the short run," Yusko says.
  • Yusko also warned about Tether's connection with FTX: 'The fact that they are in the Bahamas... makes me nervous.'
2 Reasons Bitcoin Could 'Crash To Ground Level' According To Morgan Creek's Yusko

Mark Yusko, the founder and partner of Morgan Creek Capital Management, believes that two events — GBTC and Tether USDT/USD stablecoin — could spell doom for Bitcoin BTC/USD.

What Happened: On the Altcoin Daily podcast, Yusko explained that the bear market triggered by FTX's FTT/USD collapse may last longer than predicted. 

According to Yusko, Sam Bankman-Fried is the “villain at the center of the storm.”

See More: Best Crypto Apps

Yusko also raised concerns about the potential liquidation of the Grayscale Bitcoin Trust GBTC.

GBTC is the largest Bitcoin fund that lets investors gain exposure without buying BTC. Following the collapse of FTX, DCG (Grayscale's parent company) CEO Barry Silbert revealed that Grayscale had been saddled with $2 billion in debt, as reported by CNBC.

"If GBTC has to liquidate, that would be very bad in the short run. They have a billion-dollar hole caused by the FTX and Genesis as Barry (Silbert) desperately tries to raise funds. But if he is forced to liquidate the trust and close the discount, that could be ugly," Yusko said.

After addressing his first issue — Yusko warned about the second danger—the most prominent stablecoin by market cap, Tether and its connection with FTX. “The fact that they are in the Bahamas along with Sam (SBF) makes me nervous. (….) if that were to seize, that’d be ugly,” he notes, adding that “this could crash BTC to ground level.”

Price Action: At the time of writing, BTC was trading at $17,102, up 1.22% in the last 24 hours, according to Benzinga Pro.
Read Next: Ethereum Gains Eclipse Bitcoin, Dogecoin In Broader Risk Rally: Analyst Says Charts Signal Powell's Speech Is 'So Far' Bullish

Posted In: Mark YuskoMorgan Creek Capital ManagementSam Bankman FriedCryptocurrencyNewsTop StoriesMarkets

Visit Benzinga's Crypto Homepage - 1,000,000+ depend on Benzinga Crypto every month