Scaramucci highlights key factors why crypto market will soon recover
Skybridge Capital predicts Bitcoin price to reach $300k in the next six years
By Shashank Bhardwaj
Skybridge Capital's founder and managing partner, Anthony Scaramucci, has predicted a positive outcome for crypto markets in the future. Image: 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 crypto markets in the future. He believes that Bitcoin fundamentals are 'quite 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,
"Everybody is a long-term investor until they have short-term losses."
The crypto market has recently shown signs of recovery, with Bitcoin reaching higher highs than anticipated in the short term. This followed the announcement that the inflation rate in the United States of America was slowing. More 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 major things have happened on the institutional side' that will likely generate demand for Bitcoin.
He referred to financial services company Fidelity Investments as one of the supporting arguments for his prediction. Fidelity Investments is allowing businesses to offer employees the option of investing up to 20 per cent of their retirement and savings plan in Bitcoin. In Scaramucci's words, "Fidelity is allowing for 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 clients 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. Talking about this partnership and its positive impacts on the crypto market, Scaramucci said,
"Finally, CEO Larry Fink is seeing institutional demand for digital assets. Otherwise, he wouldn’t be setting up those products, and he wouldn't be teaming up with Coinbase…When this stuff happens, I want to remind people that there are only 21 million bitcoins out there, and you will 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.
Talking about the recent increase in Ethereum's value, Scaramucci said, "Ethereum is about to merge and reduce their gas fees and transaction fees. And that's one of the reasons why ethereum is up about 70 plus per cent over the last five and a half weeks." He also believes that the global economy can return to its strong 2019 'Fourth Quarter' status within the next 6 to 12 months. He was quoted saying,
"I think that’s the message I’m trying to send to investors; just relax; we see a pretty optimistic scenario for BTC, ETH, ALGO and Solana (SOL) over the next 12 to 24 months."
Shashank is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash
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