BlackRock’s Bitcoin Trust Will Create a Demand Shock: Anthony Scaramucci

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

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

Stay Long Term, Says Scaramucci

In an inter­view with CNBC on Fri­day, Scara­muc­ci began by say­ing he’s seen a resur­gence of investor inter­est in the cryp­tocur­ren­cy mar­ket. Giv­en the bet­ter-than-expect­ed infla­tion num­bers in July, he believes that the glob­al econ­o­my can roar back to its Q4 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 con­vinced that most of its risky lever­age has been cleared from the sys­tem. Firms like Three Arrows Cap­i­tal were liq­ui­dat­ed on mul­ti­ple cryp­to col­lat­er­al­ized loans in June due to what bil­lion­aire Mike Novo­gratz called “inane” risk man­age­ment across the industry.

“It’s just a reminder to investors not to pull out, fight their own fear, stay patient, and stay long term,” con­tin­ued the founder.

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

Specif­i­cal­ly, he said that traders are “prob­a­bly buy­ing the rumor” and will “prob­a­bly sell on the news,” of the merge – in line with bil­lion­aire Mark Cuban’s pre­dic­tion on Sun­day. Again, the founder cau­tioned peo­ple to treat Bit­coin and Ethereum as long-term investments. 

Back­ing up his case, he said that 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 those prod­ucts, and he wouldn’t be team­ing up with Coin­base,” he argued. 

“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. 

Thoughts on Altcoins?

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

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

Nev­er­the­less, Skybridge’s largest cryp­to allo­ca­tions remain in Bit­coin and Ethereum. For the for­mer, Scar­muc­ci pre­dict­ed that improve­ments to Bitcoin’s light­ning net­work and appli­ca­tion lay­er will let it attract more com­mer­cial activ­i­ty in the future. 

Back in June, Scar­muc­ci said that his com­pa­ny bought more Bit­coin and Ethereum dur­ing the mar­ket crash. Last week, he pre­dict­ed that the cryp­to mar­ket has already bottomed. 

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