Mark Yusko Says ‘Fud’ in Cryptocurrency Markets Are a Chance to Make ‘Good Moves’

Mark Yusko, the founder, Chief Investment Officer, and Managing Director of Morgan Creek Capital, sheds light on the behavioral tendencies of investors, the cyclical nature of crypto price movements, and the opportunities hidden within market downturns.

Yusko starts by talking about how investing is different from shopping. Normally, when stores have sales, people rush to buy things. But when investment prices go down, people get scared and avoid buying, which is not a good strategy. 

He also showed the performance gap between average investors and traditional passive strategies by citing JPMorgan’s numbers. Over a 20-year period, the average stock index yields around nine percent, bonds about six percent, while the average investor barely achieves a two-and-a-half percent return. He attributes this to human behavior, pointing out that investors tend to chase rising prices. 

Yusko discusses why he considers the current drops in Bitcoin’s price as a chance rather than a setback. His main idea is that when things look scary and uncertain in the investment world, it’s actually a chance to make good moves. He believes that the best time to invest is when others are worried and unsure. He warns against investing when you’re really excited, as that usually doesn’t end well. So, when there’s fear, it might be a good time to act.

“We have this four-year cycle and we’re in what I refer to as crypto summer right now. Crypto summer is that time where the market has a generally upward drift. It’s not dramatic but slowly upward, higher highs, higher lows, just kind of like a roller coaster moving its way up the track.”

The price of Bitcoin went up by about 7% earlier this week. This happened because a court told the SEC to reconsider rejecting the idea of turning the Grayscale Bitcoin Trust into an exchange-traded fund. Traders are now feeling hopeful. At the time of writing, Bitcoin is trading above the $27k mark.