SkyBridge Capital founder Anthony Scaramucci recently shared positive views on the flagship cryptocurrency, Bitcoin, which could provide some comfort to BTC holders as the bear market lingers.
Scaramucci Says HODL Bitcoin
According to a report by Business Insider, the investment firm founder advised Bitcoin holders not to sell their BTC as they already made it through the winter. Interestingly, he mentioned that the worst of the bear market is over. Despite this being a bold assertion, there is evidence to suggest that he might be right.
There is the likelihood that Bitcoin has bottomed as the co-founder of Delphi Digital, Kevin Kelly once noted. Following past trends, BTC usually bottoms 18 months before the Bitcoin Halving (with the next coming in April 2024). As such, the worst part of this current market cycle might truly be over.
Scaramucci made this known while speaking at the Messari Mainnet conference in New York. He stated that he was still bullish on Bitcoin despite the cryptocurrency trading far below the highs it reached in 2021. Bitcoin peaked at $68,789 in November 2021 but has since declined by about 61%.
Meanwhile, he has singled out Wall Street’s adoption of BTC as one of the factors that will drive the cryptocurrency’s mainstream adoption. Wall Street giants, like the biggest asset manager, BlackRock, have applied to offer a Spot Bitcoin ETF, and he believes that once these firms have that in their “arsenal,” the Bitcoin market is going to widen as it is expected that institutional investors will be looking to invest in it.
Scaramucci also likened the potential growth of BTC to the Internet boom, as he stated that the younger generation would be “mainstreaming Bitcoin” the same way his generation mainstreamed the Internet (most likely about when there was massive growth in Internet adoption).
Factors That Could Affect BTC’s Growth
Despite his optimism about Bitcoin’s future, Scaramucci noted certain macro factors that could hamper Bitcoin’s growth. These factors include the higher interest rates, negative sentiment around crypto, and the SEC Chief Gary Gensler with Gensler recently stating that there are so many “hucksters” and “fraudsters” in the crypto space.
However, his opinion on the higher interest rates seems to contrast with that of Crypto analyst Nicholas Merten, who stated that the Fed isn’t doing enough (regarding the interest rate hike) to keep inflation down. According to him, re-inflation is on the rise, and this could be one of the factors that could affect Bitcoin’s price going forward.
Tug of war between bears and bulls continues | Source: BTCUSD on Tradingview.com
Featured image from iStock, chart from Tradingview.com