Anthony Scaramucci, the founder of SkyBridge Capital, recently discussed how war or terrorist attacks could potentially lead to a 10% to 15% decline in Bitcoin’s value over the next year. In a CNBC interview, Scaramucci highlighted Bitcoin’s current stage of adoption, emphasizing that the asset will not fulfill its marketed role as an inflation hedge or store of value until its user base surpasses 1 billion. He noted that Bitcoin remains volatile and is often seen as a risk-on or risk-off trade until widespread adoption is achieved. This comes as Bitcoin dipped below $60,000 amidst heightened geopolitical tensions following reports of an Israeli missile strike on Iran.
During times of geopolitical tensions and military conflicts, investors tend to turn to safer assets such as gold and government bonds to protect their investments. Scaramucci remains optimistic about Bitcoin’s long-term prospects, citing factors like the recent launch of a Spot ETF, the entrance of major financial institutions into the market, and the upcoming halving event as potential catalysts for Bitcoin’s value to reach $200,000. He also dismissed concerns about excessive centralization due to ETFs, pointing out that institutional ownership, including major players like BlackRock, represents less than 10% of the overall Bitcoin market.
Scaramucci’s latest price prediction for Bitcoin exceeds his previous forecast, as he now anticipates the digital currency surging to $200,000. Earlier this year, he had projected a price of $170,000 by mid-to-late 2025, assuming Bitcoin maintained a price above $45,000 at the time of the halving. The halving event, a technical event in the Bitcoin network that reduces the miner reward for verifying transactions by 50%, is scheduled to occur between April 19 and 20. This mechanism will continue until the total number of Bitcoins in circulation reaches its capped supply of 21 million.
Despite the potential risk of geopolitical events impacting Bitcoin’s value, Scaramucci maintains his positive outlook on the digital asset’s long-term growth. He believes that Bitcoin’s adoption will be a key factor in determining its role as an inflation hedge and store of value. While the current volatility may deter some investors, Scaramucci sees it as a temporary phase until broader adoption is achieved. With significant developments in the Bitcoin market, such as the launch of a Spot ETF and increased institutional involvement, he remains confident in Bitcoin’s potential to reach new highs in the future.
As Bitcoin continues to attract mainstream attention and investment, Scaramucci’s insights shed light on the evolving landscape of the digital asset market. With ongoing developments and events like the halving, investors are closely monitoring Bitcoin’s trajectory and potential for growth. Scaramucci’s price predictions and analysis offer valuable perspectives on how geopolitical factors, adoption rates, and market dynamics may impact Bitcoin’s value in the coming years. His optimism and strategic outlook provide valuable insights for investors navigating the rapidly changing world of cryptocurrencies.
