Anthony Scaramucci, the founder of SkyBridge Capital, remains optimistic about Bitcoin despite its recent decline from its all-time high of $74,000. This drop was fueled by a wider crypto sell-off and the launch of spot Bitcoin ETFs.
During an interview with CNBC, Scaramucci pointed out that over $10 billion flowed into Bitcoin in the first quarter of 2021, surpassing the growth of the gold ETF (GLD (NYSE:)) which took a year to reach the same milestone.
He suggested that the new ETFs may have played a role in Bitcoin’s recovery, as Wall Street tends to generate high demand for new products. Scaramucci also attributed Bitcoin’s resilience to its halving mechanism, which reduces the supply of new coins and increases scarcity, ultimately driving up the price. He dismissed claims that the effects of Bitcoin’s halving and ETF launches have been fully priced in and believes that it still has a lot more room to grow.
In terms of adoption, Scaramucci compared Bitcoin’s current global adoption rate of 6% to that of the internet in 1998, indicating its potential for growth. He also discussed the role of Bitcoin as a hedge against inflation and currency devaluation, stating that while he does not see it becoming a global standard like gold, he sees it as a major digital store of value. He believes that Bitcoin could reach half of gold’s market valuation, resulting in a six to ten times increase in price, but with great volatility.
While acknowledging the volatility and cyclicality of Bitcoin, Scaramucci set a conservative target of $170,000 for the current cycle. However, he also recognized the speculative nature of the market and the impact of waves of adoption and demand.
In addition to Bitcoin, Scaramucci’s firm, SkyBridge, has investments in other cryptocurrencies such as Ethereum and Solana, with smaller positions in tokens like Avalanche. He also mentioned the recent sentencing of FTX founder Sam Bankman-Fried, expressing his disappointment and sympathy for him and his family.
Despite the challenges and setbacks in the industry, SkyBridge remains interested in the crypto space, viewing regulatory scrutiny and legal challenges as steps towards a more mature and stable market. Scaramucci also credited the delayed approval of spot Bitcoin ETFs with exposing leverage and fraud in the system, ultimately leading to a healthier ecosystem for cryptocurrencies.
He believes that the delay in approving the spot ETF was beneficial as it gave the industry time to address issues of over-leverage and fraud, resulting in a more stable and secure market. In November 2021, the Bitcoin futures ETF was approved, and according to administrative law, the spot ETF should have been approved shortly after.
