Bitcoin and cryptocurrency prices have failed to rally in the face of the escalating Russian invasion of Ukraine, even as the gold price hits an all-time high.
The bitcoin price has lost almost 20% since the beginning of 2022 as stock markets crater in face of looming Federal Reserve interest rate hikes.
Now, Anthony Scaramucci, Donald Trump’s short-lived White House press secretary who launched a bitcoin fund last year, has issued a bold bitcoin price prediction, forecasting bitcoin will hit $100,000 within two years—and ultimately climb to $500,000.
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“I think bitcoin will have 100 million-plus wallets and it could be an inflation hedge but that’s a good five to eight years away,” Scaramucci, the founder of hedge fund SkyBridge Capital, told Magnifi Media, adding, “it would be a mistake to be under-invested or not invested in cryptocurrency.”
Last year, Scaramucci predicted bitcoin would hit $100,000 in 2021 before it crashed back to under $40,000 per bitcoin. The bitcoin price has been highly volatile over the last 24 months, crashing to under $4,000 in March 2020 before rocketing to almost $70,000 in October last year.
“This is early adopting technology,” Scaramucci said. “This will be very volatile. There’ll be periods of time where bitcoin will crash, down 50%-plus. But if you’re willing to zoom out and look at the long-term chart and look at the adoption story, could bitcoin get to $500,000 a coin? I believe it will.”
Scaramucci said he thinks the “average investor” should “average in” to bitcoin. “The only way you can handle a technology like this is to dollar-cost averaging and buy a little every month,” he said.
Meanwhile, regulators in the U.S. and around the world are rushing to get a handle on the blistering crypto market that surged to a total value of around $3 trillion last year as pandemic stimulus cash flooded markets. Some have called for stringent new crypto market regulations in order to protect investors.
“I think over time what will happen is the cooler heads, the more rational, win out,” Scaramucci said, adding: “I don’t think the United States wants to cede its leadership in financial services.”
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Last year, Scaramucci’s Skybridge Capital, a New York-based fund of funds, launched the Skybridge Bitcoin Fund with $310 million in assets under management—at the time calling bitcoin still “in its early innings.”
Slides from a leaked investor deck revealed Skybridge “expects a tidal wave of institutional capital” into the bitcoin market and predicting hedge funds, insurance companies and a long-awaited bitcoin exchange-traded fund (ETF) are “coming.”