BlackRock’s Bitcoin Trust Will Create a Demand Shock: Anthony Scaramucci

Anthony Scaramucci – founder and managing partner of Skybridge Capital – believes BlackRock’s Bitcoin trust, among other developments, will contribute to a demand shock for Bitcoin that will send its price skyrocketing.

He added that “the future” is coming faster than he thought, predicting that Bitcoin will reach $300,000 per coin within a few years.

Be long-term, says Scaramucci

In an interview with CNBC on Friday, Scaramucci began by saying that he has seen a resurgence of investor interest in the cryptocurrency market. Given that better than expected inflation rate in July, he believes the global economy could roar back to its Q4 2019 status – strong economy, low unemployment and healthy inflation – within 6 to 12 months.

“The market is starting to realize that,” he noted, adding that the crypto markets are convinced that most of its risky influence has been removed from the system. Firms such as Three Arrows Capital were liquidated on several crypto-backed loans in June due to what billionaire Mike Novogratz called “sane” risk management across the industry.

“It’s just a reminder to investors not to pull out, fight their own fears, be patient and stay long-term,” the founder continued.

In terms of short-term trading, Scarmucci noted that many investors are trading Ethereum’s merger – upcoming update which will change the network’s consensus mechanism to proof of stake.

Specifically, he said traders are “probably buying the rumor” and will “probably sell on the news,” of the merger — in line with billionaire Mark Cuban’s prediction on Sunday. Again, the founder warned people to treat Bitcoin and Ethereum as long-term investments.

In support of his case, he said that BlackRock’s latest partnership with Coinbase and the establishment of a Bitcoin fund are signs that CEO Larry Fink sees institutional demand for digital assets. “Otherwise he wouldn’t be setting up these products and he wouldn’t be merging with Coinbase,” he argued.

“I just want to remind people that there are only 21 million Bitcoins out there and you will have a demand shock with very little supply,” he concluded.

Thoughts on Altcoins?

Bitcoin wasn’t the only coin that caught Scarmucci’s attention. He also sees an “optimistic scenario” for both Solana and Algorand over the next 24 months.

In particular, he said Skybdridge has a small position in Algorand, which he praised for boasting “award-winning technology” that solves the blockchain trilemma — the challenge of achieving decentralization, security and scalability on one network.

Still, Skybridge’s largest crypto allocations remain in Bitcoin and Ethereum. For the former, Scarmucci predicted that improvements to Bitcoin’s lightning network and application layer will allow it to attract more commercial activity in the future.

Back in June, Scarmucci said his company bought more Bitcoin and Ethereum during the market crash. Last week, he predicted that the crypto market has already bottomed out.