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 soaring.
He added that the “future” is arriving sooner than he thought, and predicted that Bitcoin will reach $300,000 per coin within a few years.
Stay Long Term, Says Scaramucci
In an interview with CNBC on Friday, Scaramucci began by saying he’s seen a resurgence of investor interest in the cryptocurrency market. Given the better-than-expected inflation numbers in July, he believes that the global economy can roar back to its Q4 2019 status – strong economy, low unemployment, and benign inflation – within 6 to 12 months.
“The market is starting to realize that,” he noted, adding that crypto markets are convinced that most of its risky leverage has been cleared from the system. Firms like Three Arrows Capital were liquidated on multiple crypto collateralized loans in June due to what billionaire Mike Novogratz called “inane” risk management across the industry.
“It’s just a reminder to investors not to pull out, fight their own fear, stay patient, and stay long term,” continued the founder.
On the topic of short-term trading, Scarmucci noted that many investors are trading Ethereum’s merge – the upcoming update that will change the network’s consensus mechanism to proof of stake.
Specifically, he said that traders are “probably buying the rumor” and will “probably sell on the news,” of the merge – in line with billionaire Mark Cuban’s prediction on Sunday. Again, the founder cautioned people to treat Bitcoin and Ethereum as long-term investments.
Backing up his case, he said that BlackRock’s latest partnership with Coinbase and the establishment of a Bitcoin fund are signs that 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,” he argued.
“I just want to remind people that there are only 21 million Bitcoins out there, and you’ll have a demand shock with very little supply,” he concluded.
Thoughts on Altcoins?
Bitcoin wasn’t the only coin to catch Scarmucci’s attention. He also sees an “optimistic scenario” for both Solana and Algorand over the next 24 months.
In particular, he said that Skybdridge holds 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.
Nevertheless, 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 let it attract more commercial activity in the future.
Back in June, Scarmucci said that his company bought more Bitcoin and Ethereum during the market crash. Last week, he predicted that the crypto market has already bottomed.
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