In a recent interview, Anthony Scaramucci, the founder and managing partner of SkyBridge Capital, made a bold projection about the future value of Bitcoin. He believes that the cryptocurrency could reach $170,000 by the end of the current cycle, especially after the anticipated halving event in April 2024.
Scaramucci’s prediction is based on historical patterns observed after previous halving events. These events involve a reduction in the mining reward for creating new Bitcoin blocks, which leads to a decrease in the number of new Bitcoins entering the market. As a result, the scarcity of Bitcoin usually drives up its value. Scaramucci noted that in the past, Bitcoin’s value has typically increased by four times within 18 months after a halving.
Despite his optimistic outlook, Scaramucci remains conservative in his prediction and suggests a rise to $170,000 during this cycle. He also speculates about a future increase to $400,000, which would be close to half of the current market capitalization of gold. Scaramucci’s long-term approach to Bitcoin is evident in his belief in its potential as a store of value.
At the time of writing, Bitcoin was trading at $69,687, with a 24-hour trading volume of $21,618,062,904, according to CoinMarketCap. It has experienced a 2.05% increase in value over the past 24 hours and maintains its position as the top-ranked cryptocurrency, with a live market capitalization of $1,371,170,133,411.
Scaramucci’s optimism is supported by the growing institutional adoption of Bitcoin, particularly the increasing popularity of Bitcoin exchange-traded funds (ETFs). He highlighted the fact that Bitcoin ETFs have attracted over $10 billion in inflows in just three months, a milestone that took Gold ETFs a year to achieve. This trend indicates a growing interest in Bitcoin among leading financial institutions, which could drive up demand and prices.
Scaramucci emphasized that Bitcoin’s value goes beyond just hedging against inflation. The limited supply of 21 million coins and the expanding user base contribute to its scarcity and potential for value appreciation. While Bitcoin is known for its volatility, Scaramucci believes that seasoned investors with a long-term perspective can navigate the market swings successfully.
The interview also touched upon the recent collapse of the FTX exchange and the sentencing of its former CEO, Sam Bankman-Fried. Scaramucci acknowledged the negative impact of FTX’s crash on the industry but expressed empathy for Bankman-Fried’s personal situation. Despite the challenges, SkyBridge Capital remains committed to the crypto industry, evident in its investments in other cryptocurrencies like Solana and Avalanche.
Scaramucci also discussed the effect of regulation on the cryptocurrency ecosystem. He criticized the Chairman of the U.S. Securities and Exchange Commission, Gary Gensler, for delaying the approval of spot Bitcoin ETFs. However, Scaramucci believes that this delay has allowed for the exposure of leverage and fraud, making crypto transactions and valuations healthier. He also highlighted the approval of the Bitcoin futures ETF in November 2021 as a significant milestone in the regulatory acceptance of digital assets.
