In a recent interview, Anthony Scaramucci, founder and managing partner of SkyBridge Capital, projected a surge in Bitcoin’s value, particularly after the expected halving event in April 2024.
According to Scaramucci, Bitcoin could hit a target of $170,000 by the end of the current cycle. This prediction is based on patterns seen after all the previous halving events, which are known to decrease the number of new Bitcoins into the market.
#Bitcoin is up over 140% over the last year, hitting all-time highs last month fueled by demand from spot ETFs. @Scaramucci discusses why he thinks Bitcoin is back: pic.twitter.com/HJxQEy6XY0
— CNBC's Closing Bell (@CNBCClosingBell) April 5, 2024
After halving events, Bitcoin history usually involves cutting the mining reward for creating new blocks, resulting in new Bitcoins becoming scarce, which usually increases their value. Scaramucci pointed out that historically, Bitcoin has gained value, usually increasing by four times within 18 months of a halving.
Nevertheless, he remains conservative in his prediction and proposes a rise to $170,000 this cycle. Scaramucci’s long-term approach is also reflected in his speculations on a future increase to $400,000, which would be approaching half of the current market capitalization of gold.
At press time, Bitcoin was trading at $69,687, accompanied by a 24-hour trading volume of $21,618,062,904, per CoinMarketCap. BTC has witnessed a 2.05% increase in value over the last 24 hours. Bitcoin maintains its position at the top of the rankings, with a live market capitalization of $1,371,170,133,411.
BTC/USD 1-day price chart (Source: CoinMarketCap)
Institutional Interest and Bitcoin ETFs Growth
The growth of institutional adoption of Bitcoin continues to support Scaramucci’s enthusiasm. He cited the rising growth of Bitcoin exchange-traded funds (ETFs) as a solid sign. He pointed out that Bitcoin ETFs hit a total of over 10 billion-dollar inflow in just three months, a feat that Gold ETFs achieved in a year. This is an indication of leading financial organizations’ increasing interest in Bitcoin, which might result in more demand and a price shooting.
Scaramucci emphasized the aspect of Bitcoin as a long-term value stooge. Therefore, he stated that it is more than just the inflation hedging. The limited 21 million coin cap supply and the growing number of users associated with the cryptocurrency lead to its scarcity and value appreciation potential. Though known to be very volatile, Scaramucci is confident that seasoned investors with a strategic long-term perspective can do well in the market swings.
The Ripple Effects of FTX’s Collapse
Scaramucci also discussed the recent sentencing of Sam Bankman-Fried, the former CEO of the defunct FTX exchange. Disappointedly and empathically, he recognized that FTX’s crash would negatively affect the industry. Nevertheless, he, too, displayed empathy towards Bankman-Fried’s psychological state and the personal cost of the situation.
SkyBridge’s consistent regard for the crypto industry, despite the obstacles, shows faith in the development and settling of the market. Scaramucci spoke about SkyBridge’s investments in other cryptocurrencies, such as Solana and Avalanche, showing the variety in their crypto portfolio.
Scaramucci paid attention to the regulation’s effect on the cryptocurrency system. He accused the Chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, of postponing the approval of the spot Bitcoin ETFs.
Scaramucci claimed that the delay allowed for leverage and fraud to become exposed, so crypto transactions and valuations are more healthy. He also talked about the approval of the Bitcoin futures ETF in November 2021 as one of the milestones in the regulatory acceptance of digital assets.
