Bitcoin Bull Market to Start Once US Inflation Drops to 4–5%: Scaramucci

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Antho­ny Scara­muc­ci – the Founder of Sky­Bridge Cap­i­tal and for­mer White House offi­cial – believes cryp­tocur­ren­cies will revive once the Fed­er­al Reserve stops rais­ing inter­est rates.

He thinks this will hap­pen once infla­tion in the Unit­ed States dropped back down to 4–5%.

The Surge Could be on the Horizon

The financier thinks the US cen­tral bank will halt the inter­est rate hikes before reach­ing the 2% infla­tion goal and, thus, stim­u­late a price expan­sion for risk assets, such as cryptocurrencies:

“I do believe that the Fed declares vic­to­ry at 4% to 5% infla­tion. If I’m right, there will be a resur­gence in the mar­ket. There’ll be a lot of short cov­er­ing in cryp­to, and there’ll be a rebirth of risk assets.”

Anthony Scaramucci. Source: CNBC
Antho­ny Scara­muc­ci. Source: CNBC

Recall that January’s CPI num­bers showed the infla­tion in the USA in Decem­ber stood at 6.5%, while the peak was marked in June last year when the rate reached a 40-year high of 9.1%.

Scaramucci’s invest­ment man­age­ment firm – Sky­Bridge Cap­i­tal – has around 10% expo­sure to bit­coin through the Sky­Bridge Mul­ti-Advis­er Hedge Fund Port­fo­lios Series G fund. He said the com­pa­ny might focus on oth­er assets if the pri­ma­ry cryp­tocur­ren­cy starts a bull run.

The Amer­i­can, who briefly served as the White House Direc­tor of Com­mu­ni­ca­tions, is among the most promi­nent bit­coin advo­cates and kept his faith through­out the con­tin­u­ous mar­ket decline. 

How­ev­er, he has advised peo­ple to prop­er­ly scale their BTC invest­ments and allo­cate not more than 5% of their total sav­ings. Thus, they could enjoy sol­id prof­its if the asset sky­rock­ets in the future, while poten­tial loss­es would be insignif­i­cant in case of a price shrink (which he doubts). 

‘I got Burned by Sam’

Scara­muc­ci, who once had a close rela­tion­ship with the for­mer CEO of FTX – Sam Bankman-Fried – and mem­bers of his fam­i­ly, shed more light on the loss­es that the exchange’s col­lapse trig­gered for his company.

Sky­Bridge accept­ed $45 mil­lion in fund­ing from SBF short­ly before the demise of the plat­form and used the cash to pur­chase $10 mil­lion worth of FTT tokens. The firm lat­er sold the stash at a loss of $9.6 million.

“I don’t shy away from it. I think it’s impor­tant for peo­ple who believe in cap­i­tal­ism and impor­tant for peo­ple that are risk-tak­ers to under­stand what hap­pened. I’m not going to be the per­son that takes no more risk in the future because I got burned by Sam,” Scara­muc­ci stated.

He recent­ly com­pared SBF to “the Bernie Mad­off of cryp­to,” say­ing “the ninth cir­cle of Hell” is reserved for peo­ple like him. 

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