SkyBridge Capital’s Anthony Scaramucci remains bullish on despite its recent pullback from a record peak of $74,000, driven by a broader sell-off and the launch of spot bitcoin exchange-traded funds.
In an interview with CNBC, Scaramucci highlighted the rapid inflow of more than $10 billion in the first quarter alone into Bitcoin, outpacing the growth of an ETF that took a year to reach the same milestone.
“ETFs may have played a role in Bitcoin’s comeback. I think we can agree on that. When Wall Street gets a product like this, it becomes a vending machine, generating a lot of demand for the product.”
Scaramucci attributed Bitcoin’s resilience to several factors, including a halving mechanism that reduces the number of new coins entering the system, ultimately causing the price to rise due to scarcity. He remains skeptical of claims that the effects of the Bitcoin halving and the launch of ETFs have been fully priced in, stating instead that Bitcoin “still has a long way to go.”
“Its global adoption is about 6% in terms of world population, which is the same size as Web1 adoption in 1998, to give you an idea of the growth potential.”
Speaking about Bitcoin as a hedge against inflation and currency devaluation, Scaramucci noted that although he does not see Bitcoin becoming a global standard like gold, he does see it as a major digital store of value. He believes the major currency could reach half the market value of gold, noting “it will move six to eight or 10 times, but that will come with significant volatility.”
Speaking about the volatility and cyclicality of Bitcoin, Scaramucci set a conservative target for Bitcoin in the current cycle of $170,000. However, he acknowledged the speculative nature of the market and the impact of waves of adoption and demand.
In the broader context of the cryptocurrency market, Scaramucci pointed to investments in other cryptocurrencies such as and, highlighting Bitcoin’s role as a leading asset in this space.
“Bitcoin is the market leader. We also like Solana, which is fully disclosed. We have smaller positions like Avalanche, and we are looking at some other tokens.”
He also touched on the recent sentencing of FTX founder Sam Bankman-Fried, adding that he was personally disappointed that the saga was a broader setback for the industry overall.
“I felt so bad for the kid. He hurt my business, he hurt my reputation. He sold part of our business, lied to a lot of people, hurt a lot of people. But when you really look at him closely, he seems like a very damaged man who will probably spend 18 to “20 years of his future are on that sentence. Despite the lenient sentence, I’m not sad for Sam. I feel bad for him and his family.”
Despite the challenges, Scaramucci’s company, SkyBridge, remains interested in the cryptocurrency space, seeing regulatory scrutiny and legal challenges as steps toward a more mature and stable market.
“American has lost about 22% of its value since January of 2020, while Bitcoin has risen 8 to 1. If you hold Bitcoin in a rolling four-year period, you have done really well. They never lose money if they are able “You can hold it for periods like this, which shows Bitcoin’s potential as a long-term inflation hedge.”
Finally, Scaramucci credited the delayed approval of Bitcoin ETFs to exposing leverage and fraud in the system, which ultimately led to a healthier cryptocurrency ecosystem.
“I believe Gary Gensler did the entire industry a disservice by delaying approval of spot ETFs, exposing excessive leverage and fraud in the system, leading to a healthier cryptocurrency ecosystem. He approved a Bitcoin futures ETF in November of 2021, and if you follow administrative law, the spot ETF should have been approved shortly after.”
2024-04-08 05:46:06
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