“We’re Through the Bear Market” as Bitcoin Gains 70% YTD
After Bitcoin’s (BTC) stellar start to 2023, SkyBridge Capital founder Anthony Scaramucci believes “we are through the bear market” and expressed confidence in his firm’s crypto investments.
However, “the Mooch” qualified the statement by adding, “It’s a guess. We don’t know.”
In an April 6 interview with Yahoo Finance, Scaramucci noted that Bitcoin has consistently outperformed all other asset classes over long periods of time, saying:
“But every time you’ve held Bitcoin for a four-year rolling interval, so you pick the day, hold it for four years, you’ve outperformed every other asset class.”
Scaramacci also expressed his bullish outlook for the leading crypto by market capitalization ahead of the next halving cycle, which is set to take place in early March 2024 according to NiceHash.
Bitcoin has historically operated on a four-year cycle, with the start of an upward trend shortly after each halving cycle.
The theory behind the price cycle is that block rewards are halved making the BTC that exists more scarce, and therefore more valuable.
Bitcoin has recorded gains of nearly 70% in 2023 according to Cointelegraph Pro, rising from $16,521 to $28,060 compared to the S&P 500 index which rose by just over 7% over the same time period.
Bitcoin’s enviable start to 2023 also comes amid what can only be described as poor market and regulatory conditions that could yet weigh on the price.
Crypto institutions based in the US are struggling to find banking partners and liquidity after the collapse of crypto-friendly banks such as Silvergate, Silicon Valley and Signature Bank, and there are fears that the US is putting in place a policy to prevent banks from interacting with crypto.
Related: Bitcoin ‘faces headwinds’ as US money supply shrinks most since 1950s
In addition, the two largest crypto exchanges in the world according to CoinMarketCap – Binance and Coinbase – have both been subject to recent scrutiny from regulators.
Coinbase received a Wells Notice on March 22 notifying of possible enforcement by the Securities and Exchange Commission, while Binance has been sued by the Commodity Futures Trading Commission for allegedly violating trading and derivatives rules
Despite these events, crypto sentiment remains positive.
The Crypto Fear & Greed Index, an indicator used to gauge crypto sentiment, is currently in greed territory and pushing for highs not seen since November 2021 – Bitcoin’s all time high.
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