Bitcoin’s price could see a significant increase in the coming months, according to Anthony Scaramucci, the founder of Skybridge Capital. During an interview with Altcoin Daily, Scaramucci shared his hypothesis on Bitcoin’s price. He believes that if the U.S. Securities and Exchange Commission (SEC) approves Blackrock’s ETF, the price of Bitcoin could react very positively in the medium to long term. Scaramucci predicts that if approved, the market value of BTC could multiply by 11 from its current levels. This is based on the assumption that these ETFs could bring hundreds of billions of dollars in new capital inflows to the Bitcoin market.
Currently, Bitcoin has a total market capitalization of just under $600 billion and a price of about $30,000. A factor of x11 would push its market capitalization beyond $6 trillion and potentially skyrocket its price beyond $300,000. Other analysts have estimated that as much as $200 billion could come into the Bitcoin market through ETFs, but they do not provide precise estimates of the price impact.
Scaramucci’s hypothesis takes into account the potential influx of new capital over the next three years. It is estimated that it could take up to three years for all the expected capital inflows to arrive. Interestingly, within these three years, there will be the fourth halving of Bitcoin in April 2024, which historically has been followed by a bull run. However, reaching a price of $300,000 would require a larger growth factor than previous post-halving periods.
Scaramucci also expressed his negative views on SEC Chairman Gary Gensler. He recalled their time together at Goldman Sachs and described Gensler as someone who was loathed then. Scaramucci speculated that Gensler may have been offended by generous donations made by FTX co-founder Sam Bankman-Fried to U.S. politicians. He criticized Gensler for being hypocritical and righteous, suggesting that it could pose challenges to the cryptocurrency industry for a while longer. It’s important to note that Gensler was appointed chairman of the SEC in 2021 and could potentially be replaced in 2025 if there is a Republican victory in the next U.S. presidential election.
In conclusion, Scaramucci believes that the approval of spot Bitcoin ETFs by the SEC could lead to a significant increase in Bitcoin’s price. However, the actual timing and extent of this price increase depend on the arrival of new capital inflows. While Scaramucci’s prediction of Bitcoin reaching $300,000 seems optimistic compared to other estimates, it remains to be seen how these factors will play out in the coming years.
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