Skybridge Capital founder Anthony Scaramucci said in a recent interview that he is more bullish on Bitcoin BTC/USD now than he has ever been.
What Happened: In an interview with Decrypt published on Thursday, Scaramucci said there are grounds for bullishness. The boom-bust cycles of Bitcoin and other cryptocurrencies coincide with the mechanics of the halving process, he explained, adding that another halving will take place in April of next year.
The period between January 2021 and the end of 2022 saw a huge increase in Bitcoin’s popularity, leading to a boom-bust cycle, the hedge fund manager said. The cryptocurrency went through an exaggerated boom-bust cycle because the media had given Bitcoin significant attention and because of the wide availability of Bitcoin wallets during that time, he added.
Scaramucci noted that it was during this span that frauds mushroomed. “What happened almost right on time is the intersection of fraud and over-leverage, which always happens in the age of new technology,” he said.
“The technology that we have now can create a bee swarm,” Scaramucci said. Drawing a parallel to previous years, he noted that, 10 to 15 years ago, centralized hedge fund managers could make single stock decisions and wouldn’t necessarily have experienced a counteraction by such a bee swarm since these managers didn’t have platforms like Zoom, Instagram, iMessage and the like.
Scaramucci touched on recent setbacks in the crypto industry, including the disasters involving FTX, Celsius, Luna and BlockFi, and SEC Chairman Gary Gensler’s anti-crypto stance.
Bitcoin is an “incredibly sturdy, bizarrely anti-fragile asset class” and could probably go to $40,000 or $50,000 by the end of the year, Scaramucci added.
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Institutional Interest: In discussing how various individuals assess Bitcoin, Scaramucci noted that, on one end of the spectrum, there are people like Michael Novogratz, who Scaramucci says qualifies as an “instividual,” and Michael Saylor, while, on the other hand, there are those like Charlie Munger and Jamie Dimon.
Then, there is the regulatory world, Scaramucci said. Money center banks and regional banks are under siege right now and are going to need Washington, he said.
“Jamie Dimon is probably the smartest person in financial services history since the original J.P. Morgan, and there’s no way if you got him unplugged and you got him with truth serum in him that he would say to you that Bitcoin is a decentralized bedrock,” Scaramucci said.
If Grayscale wins its case against the SEC and turns its BTC trust into the largest BTC ETF, the floodgate of institutional demand will open, the fund manager said. This is because every wealth management firm will need to have a cash Bitcoin ETF, the analyst said.
“Maybe they lose it in the Supreme Court, but I’m going to tell you what they’re not losing is in the court of public opinion,” Scaramucci said, explaining that there are 77 million people in the U.S. who have a cryptocurrency wallet.
As of writing, Bitcoin traded at $30,391.13, down 0.76%, according to Benzinga Pro data.
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