BlackRock’s Bitcoin trust, among other developments, according to Anthony Scaramucci, founder and managing partner of Skybridge Capital, will contribute to a demand shock for Bitcoin that would cause its price to rise.
The “future” is, he continued, coming sooner than he had anticipated, and he predicted that in a few years, the price of a single Bitcoin will exceed $300,000. Can BlackRock’s Bitcoin Trust have such an impact?
Stay Long, Advises Scaramucci
Scaramucci opened his interview with CNBC on Friday by stating that he has noticed a rise in investor interest in the cryptocurrency market. He thinks that the global economy can return to its Q4 2019 status—a strong economy, low unemployment, and benign inflation—within six to twelve months, given the better-than-expected inflation statistics in July.
The majority of the system’s dangerous leverage has, in his words, been removed from the system, and the market is starting to appreciate that, he added. In June, businesses like Three Arrows Capital were liquidated on a number of crypto collateralized loans as a result of what industry-wide risk management, according to billionaire Mike Novogratz, was “inane.”
“It’s just a reminder to investors not to pull out, fight their own fear, stay patient, and stay long term,” continued the founder.
Scarmucci mentioned that a lot of investors are trading Ethereum’s merge, which is a forthcoming update that will switch the network’s consensus method to proof of stake.
In particular, he stated that, in line with billionaire Mark Cuban’s prediction on Sunday, traders are “probably buying the rumor” and will probably sell on the announcement of the merger. The founder reiterated his previous warning to treat Bitcoin and Ethereum as long-term investments.
In support of his claim, he claimed that the newest collaboration between BlackRock and Coinbase, as well as the launch of a Bitcoin fund, are indications that CEO Larry Fink is aware of institutional demand for digital assets. “Otherwise he wouldn’t be setting up those products, and he wouldn’t be teaming up with Coinbase,” he asserted.
“I just want to remind people that there are only 21 million Bitcoins out there, and you’ll have a demand shock with very little supply,” he concluded.
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