Skybridge Expects Bitcoin to Reach $300K in 6 Years — ‘You Are Going to See a Lot More Commercial Activities’
Skybridge Capital is “pretty optimistic” about bitcoin and ethereum over the next 12 to 24 months. The global asset management firm’s founder explained that the world’s largest cryptocurrency could reach $300K in six years, urging investors to “just relax” and “stay long-term.”
Skybridge Optimistic About Bitcoin and Ethereum
Anthony Scaramucci, founder and managing partner at global asset management firm Skybridge Capital, shared his firm’s outlook for bitcoin and ethereum in an interview with CNBC Friday.
Replying to a question about whether the crypto winter is over, he said: “I want to caution people to see through the current environment,” citing better-than-expected economic data such as inflation and unemployment numbers released last week.
“The crypto market, it’s our belief that most of the leverage is completely out of that system. So you are seeing a very strong recovery,” the Skybridge founder described, elaborating:
It is a reminder to investors not to pull out, fight their own fear, stay patient and stay long-term.
“We hit pause. The pandemic created this havoc. We inducted a lot of money into the system that caused some inflation and obviously had the supply chain disruption. But you could very well get back to that fourth quarter 2019, which was a very strong economy — low unemployment and benign inflation. That’s probably 6 to 12 months away. I think the market is starting to realize that,” he detailed.
Skybridge’s largest crypto positions are in bitcoin and ethereum, he noted, adding that the firm also likes solana and has “a very large position” on algorand.
Sharing his outlook for bitcoin specifically, Scaramucci described “the improvement of Lightning network, the increase in applications, and ease of transactions on bitcoin,” noting:
You are going to see a lot more commercial activities there.
Meanwhile, “You have The Merge coming with Ethereum, which is going to lower the transaction fees on that network. A lot of traders are probably buying that rumor … They’ll probably sell on the news of The Merge, which will happen in mid-September,” he said. “I would caution people not to do that. These are great long-term investments.”
The Skybridge founder stressed:
In the next six years, if we are right, if bitcoin goes to $300,000 a coin, it will not matter whether you bought it at $20,000 or $60,000. It’s really not going to matter.
“And I am just cautioning people, the future is upon us. It’s happening sooner than I thought,” he continued.
Scaramucci then referenced Blackrock, the world’s largest asset manager, which recently launched a bitcoin private trust, citing “significant” demand from some institutional investors. “Finally, Larry Fink [the CEO of Blackrock] is seeing the institutional demand. Otherwise, he wouldn’t be setting up those products and teaming up with Coinbase,” the Skybridge founder opined. “When this stuff happens, I want to remind people that there’s only 21 million bitcoins out there, and you will have a demand shock with very little supply.”
Earlier this month, Scaramucci said that bitcoin’s fair market value is $40K and ethereum’s is $2,800. In March, he doubled down on his firm’s predictions that bitcoin would reach $100K by the end of this year and $500K long-term.
Scaramucci is discouraging people from investing based on emotion, noting that the message he is trying to send investors is “see through this.”
“If you are out of the market for the 10 best days, you reduce your return from like a 7.5% return to a 2% return. That is the overall stock market,” he said. “There’s a lot of short-term people, a lot of research departments, and different wirehouses that have knee-jerk reactions to things and get overly emotional.”
While emphasizing, “We are trying to tell people, just relax, see through this,” Scaramucci remarked:
We see a pretty optimistic scenario for bitcoin, ethereum, solana, and algorand over the next 12 to 24 months.
What do you think about the comments by the Skybridge Capital founder? Let us know in the comments section below.
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