Anthony Scaramucci – founder of SkyBridge Capital – predicts that the next Bitcoin (BTC) halving will catapult the asset’s price to $170,000 per coin.
His latest estimate is based on Bitcoin's continued track record of reaching new all-time highs following the “halving” – an event that occurs roughly every four years and halves the rate at which new BTC are produced.
Scaramucci's “conservative” estimate
Scaramucci has long considered Bitcoin a superior store of value to gold and compared its potential for outsized returns to that of Amazon stock (AMZN).
“Go back and look at the Bitcoin halving cycles,” Scaramucci said on the Scott Melker podcast last week. “On the day Bitcoin halves, multiply it by four [and] 18 months later, it is scary that the price of Bitcoin was this high.”
According to Yahoo Finance, Bitcoin's last halving took place on May 11, 2020, on which day the asset closed at $9,670. Almost exactly 18 months later, the asset reached its current all-time high of $69,000.
At the halving before that, BTC closed at $656 on July 16, 2016, before rising to a high of $19,783 in December 2017.
This time, the financier says his price target of $170,000 is “conservative” and based on a Bitcoin price of $35,000 at the time of the April 2024 halving. As of Monday, Bitcoin is trading at $43,000.
Let's say we're at $50,000 in April, then it's $200,000. Let’s say we’re at $60,000, then we’re at $240,000,” he said.
Digital gold
In the long term, Scaramucci says Bitcoin will “easily” reach half of gold’s market cap, which currently stands at $13.6 trillion. That would mean a Bitcoin price of at least $323,000 per coin.
Scaramucci previously revealed that his fund was the first-ever outside investor to purchase shares of BlackRock's Bitcoin spot ETF before it was approved on January 11.
Similar to Scaramucci, BlackRock CEO Larry Fink has repeatedly referred to Bitcoin as “digital gold” and a “flight to quality” in times of uncertainty.
Scaramucci said he met Larry Fink in person in 2021 and that he thought Bitcoin was “stupid” at the time. Scaramucci praised Fink for being willing to change his mind about the asset.
“It takes a very smart leader to proudly say that Bitcoin sucks, and then 24 months later say, 'You know what I misunderstood, BlackRock needs to be a part of this.'”
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.