Bitcoin
BTC
The bitcoin price has dropped more than 10% this week, erasing all of its August gains—despite one exchange CEO predicting you’ll be able to buy a Bugatti with just one bitcoin by the end of 2022. The ethereum price has also fallen but is performing far better as traders eye a “hundred-pound gorilla” that’s “getting closer by the day.”
Now, after issuing two huge bitcoin and ethereum “fair market value” price predictions this month, Donald Trump’s short-lived White House director of communications and the managing partner at asset manager Skybridge Capital Anthony Scaramucci has predicted the bitcoin price could hit $300,000 in just six years and revealed the ethereum challenger he has “a very large position” in.
Want to stay ahead of the market and understand the latest crypto news? Sign up now for the free CryptoCodex—A daily newsletter for traders, investors and the crypto-curious
Donald Trump’s former White House communications director Anthony Scaramucci has become a big … [+]
“In the next six years, if we are right, if bitcoin goes to $300,000 a coin, it will not matter whether you bought it at $20,000 or $60,000,” Scaramucci, who served as president Donald Trump’s comms director for just two weeks in 2017, told CNBC. “I am just cautioning people, the future is upon us. It’s happening sooner than I thought.”
Skybridge Capital, a New York-based fund of hedge funds, last year launched the Skybridge Bitcoin Fund with $310 million in assets under management but in July was reportedly forced to suspend redemptions in another fund after sharp declines in stocks and cryptocurrency prices.
While Skybridge’s largest crypto positions are in bitcoin and ethereum, Scaramucci said he has bought ethereum rival solana and has “a very large position” in another ethereum challenger algorand.
“We think [algorand] has award-winning technology,” Scaramucci said, adding he’s still “pretty optimistic” about bitcoin and ethereum over the next 12 to 24 months.
“You are going to see a lot more commercial activities there,” he said, pointing to “the improvement of [bitcoin’s second layer] lightning network, the increase in applications, and ease of transactions on bitcoin.”
Bitcoin’s growing lightning network is designed to speed up transactions, reduce fees and even potentially allow it to compete more directly with ethereum and other smart contract blockchains.
Scaramucci also said the recent news of a massive $10 trillion crypto game-changer that could “open the floodgates” of institutional investors into bitcoin and crypto will likely affect crypto prices.
“When this stuff happens, I want to remind people that there’s only 21 million bitcoins out there, and you will have a demand shock with very little supply.”
Sign up now for CryptoCodex—A free, daily newsletter for the crypto-curious
The bitcoin price has fallen sharply this week, crashing back toward $20,000 per bitcoin and … [+]
Ethereum, the second-largest cryptocurrency after bitcoin, is meanwhile braced for a major upgrade that’s scheduled for mid-September that’s helped the ethereum price to soar over the last two months. However, Scaramucci said he expects the ethereum price to dip in the short term before rebounding eventually.
“A lot of traders are probably buying that rumor,” Scaramucci said. “They’ll probably sell on the news of the merge. I would caution people not to do that.”
Market analysts have this week blamed uncertainty over the Federal Reserve’s road map as one of the reasons for “weakness” in the crypto market.
“Weakness has seeped into the crypto sphere as speculators retreated from highly risky assets amid expectation that higher interest rates were set to linger for much longer, after minutes were released from the U.S. Federal Reserve indicating policymakers were intent to stay firmly on their monetary tightening path,” Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, wrote in an emailed note.
