Home Ethereum BlackRock’s Bitcoin Trust will create a demand shock: Anthony Scaramucci

BlackRock’s Bitcoin Trust will create a demand shock: Anthony Scaramucci

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BlackRock’s Bitcoin Trust will create a demand shock: Anthony Scaramucci

Anthony Scaramucci – founder and managing partner of Skybridge Capital – believes that BlackRock’s confidence in Bitcoin, among other developments, will contribute to a demand shock for Bitcoin that will send its price skyrocketing.

He added that the “future” is coming sooner than he thought and predicted that Bitcoin would hit $300,000 per coin within a few years.

Stay long term, says Scaramucci

In a interview with CNBC on Friday, Scaramucci began by saying that he had seen renewed investor interest in the cryptocurrency market. Given better than expected inflation figures in July, it estimates that the global economy can return to its fourth quarter 2019 status – strong economy, low unemployment and benign inflation – within 6 to 12 months.

“The market is starting to realize that,” he noted, adding that crypto markets are confident that most of its risky leverage has been knocked out of the system. Companies like Three Arrows Capital were liquidated on multiple collateralized crypto loans in June due to what billionaire Mike Novogratz called “inept” risk management across the industry.

“It’s just a reminder to investors not to back down, to fight their own fear, to be patient and to stay for the long haul,” the founder continued.

On short-term trading, Sarmucci noted that many investors are trading the Ethereum merger – the upcoming update this will change the network’s consensus mechanism to proof-of-stake.

Specifically, he said traders are “likely to buy the rumor” and “likely to sell on the news” of the merger – agreeing with billionaire Mark Cuban. prediction on Sunday. Again, the founder warned people to treat Bitcoin and Ethereum as long-term investments.

Supporting his case, he said BlackRock’s latest partnership with Coinbase and the establishment of a Bitcoin Fund are signs that CEO Larry Fink is seeing institutional demand for digital assets. “Otherwise he wouldn’t be setting up these products and he wouldn’t be teaming up with Coinbase,” he explained.

“I just want to remind people that there are only 21 million Bitcoins, and you will have a demand shock with very little supply,” he concluded.

Thoughts on Altcoins?

Bitcoin wasn’t the only coin to catch Sarmucci’s attention. He also sees an “optimistic scenario” for Solana and Algorand over the next 24 months.

In particular, he said that Skybdridge has a small position in Algorand, which he praised for its “award-winning technology” that solves the blockchain trilemma – the challenge of decentralization, security and scalability on a single network.

Nevertheless, Skybridge’s largest crypto allocations remain in Bitcoin and Ethereum. For the former, Sarmucci predicted that improvements in Bitcoin’s Lightning network and application layer will help it attract more business in the future.

In June, Sarmucci said his company bought more Bitcoin and Ethereum during the stock market crash. Last week he predicted that the crypto market has already bottomed out.

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