Scaramucci highlights key factors why the crypto market will recover soon
Scaramucci highlights key factors why the crypto market will recover soon
Skybridge Capital predicts that the Bitcoin price will reach $300ki within the next six years
By Shashank Bhardwaj
Skybridge Capital’s founder and managing partner, Anthony Scaramucci, has predicted a positive outcome for the crypto markets in the future. Photo: Dave Kotinsky / GETTY IMAGES NORTH AMERICA / Getty Images via AFP
Skybridge Capital’s founder and managing partner, Anthony Scaramucci, has predicted a positive outcome for the crypto markets in the future. He believes that Bitcoin fundamentals are “pretty good” in the long run due to factors that will “create a demand shock” for the crypto. As a result, he advises investors to be patient in the long run by looking beyond the current environment. He stated,
“Everyone is a long-term investor until they have short-term losses.”
The crypto market has recently shown signs of recovery, with Bitcoin hitting higher-than-expected near-term highs. This followed the announcement that the rate of inflation in the United States was slowing. Several investors became bullish on the market as a result of the news. Scaramucci’s Skybridge Capital predicts that the price of Bitcoin will reach $300,000 in the next six years after considering several factors. Scaramucci believes “two big things have happened on the institutional side” that are likely to generate demand for Bitcoin.
He mentioned the financial company Fidelity Investments as one of the supporting arguments for his prediction. Fidelity Investments allows companies to offer employees the opportunity to invest up to 20 percent of their retirement and savings plan in Bitcoin. In Scaramucci’s words, “Fidelity allows their 401k products to offer Bitcoin.”
He also stated that Blackrock would be another factor in Bitcoin’s recovery. Blackrock recently announced a partnership with Coinbase to provide customers with a private trust through which they can invest in Bitcoin. It is worth noting that Blackrock is an investment management firm that manages $8.5 trillion in assets. Speaking about this partnership and its positive effects on the crypto market, Scaramucci said,
“Finally, CEO Larry Fink is seeing institutional demand for digital assets. Otherwise he wouldn’t be setting up these products and he wouldn’t be merging with Coinbase…When this happens, I want to remind people that there are only 21 million bitcoins out there and you’re going to have a demand shock with very little supply.”
Scaramucci also mentioned the Lightning Network, a long-awaited Bitcoin network upgrade. This upgrade will add a two-layer payment protocol on top of Bitcoin. With this upgrade, it is expected that the number of blockchain applications will increase. The network’s scalability is also expected to improve. In this context, Scaramucci stated that there would be “a lot more commercial activities” on Bitcoin.
Speaking about the recent rise in Ethereum’s value, Scaramucci said: “Ethereum is consolidating and reducing their gas fees and transaction fees. And that’s one of the reasons why ethereum is up about 70 plus percent in the last five and a half weeks.” He also believes the global economy could return to its strong 2019 ‘fourth quarter’ status over the next 6 to 12 months. He was quoted as saying:
“I think that’s the message I’m trying to send to investors; just relax; we see a pretty bullish scenario for BTC, ETH, ALGO and Solana (SOL) over the next 12 to 24 months.”
Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash
