Amid the rising tensions between Iran and Israel, Anthony Scaramucci, founder and managing partner of SkyBridge Capital, shared insights into the intricacies of Bitcoin. During an interview on CNBC’s “Squawk Box” on April 18, he talked about Bitcoin’s volatility, its status as a safe haven asset, adoption rates, and the potential impact of US-listed spot Bitcoin Exchange-traded funds (ETFs).
A Long Journey Ahead
Scaramucci drew parallels between Bitcoin’s current stage and the early days of the Internet in 1999, highlighting its nascent yet rapidly evolving nature. He suggested that Bitcoin‘s journey towards stability as a store of value would solidify once it surpasses a billion users.
However, the millionaire acknowledged the challenges of predicting bitcoin’s short-term price movements, especially amidst recent geopolitical tensions. Moreover, he cautioned that, for now, its price remains susceptible to risk-on and risk-off trades, stating:
“You won’t see this be an inflation hedge or a store of value, as other pundits are saying, until you get over a billion users. Right now, it’s going to be way more volatile than people like, and people look at it as a risk-on or risk-off trade until we get to that adoption curve.“
Bitcoin: A Safe Haven
The discussion delved into Bitcoin’s potential as a safe haven asset. Scaramucci noted the digital asset’s volatility during crises, such as geopolitical conflicts or economic downturns. He indicated that, while it may not currently serve as a reliable safe haven, its long-term outlook remains promising.
Interestingly, SkyBridge Capital’s founder reiterated his forecast on bitcoin’s price, reaching between $170,000 and $200,000, bolstered by the upcoming halving. He emphasized keeping patience and looking at long-term goals, by stating:
“No one has ever lost money in Bitcoin over a rolling four-year period of time.“
Interestingly, renowned analyst Anthony “Pomp” Pompliano recently made similar statements on social media X, dismissing the recent bitcoin crash as inconsequential for long-term investors. He refuted claims of Bitcoin’s failure as a safe haven, citing investors’ historical tendency to seek refuge in liquid assets like dollars during periods of uncertainty, as observed during the COVID-19 pandemic.
Scaramucci on Bitcoin ETFs: A Channel to Connect Traditional Investors
The imminent launch of US-listed spot Bitcoin ETFs in January is anticipated to significantly impact Bitcoin’s market dynamics. Scaramucci believes these ETFs will act as an important channel for traditional investors, enhancing bitcoin’s price discovery and adoption through regulated investment vehicles.
He also commented on concerns regarding the ETFs leading to excessive centralization of bitcoin ownership, asserting that they would actually broaden the investor base and enhance liquidity. He explains:
“Bitcoin’s got $1.4 trillion in market capitalization, and let’s say it went up 5x from that and the market capitalization didn’t move, it’s still less than 10% of the overall ownership of bitcoin. This whole notion that the ETFs are going to overly centralize bitcoin, I don’t buy it.”
It is important to note that now-bitcoin-advocate Scaramucci once used to be a skeptic. His transformation into a Bitcoin advocate stems from his belief in its core principles and its potential role in future financial systems.
