On the strength of a continuous upturn in the cryptocurrency market, international investment company SkyBridge Capital expects Bitcoin will reach the $35,000 price level by the end of 2023.
Anthony Scaramucci, the founder of SkyBridge Capital, acknowledged that this viewpoint was “overly bullish,” but claimed that the upcoming “halving” of bitcoin, which occurs every four years and reduces the number of new bitcoins released by half, could give the recent cryptocurrency rally even more traction.
“If bitcoin could trade back to $35,000, SkyBridge is going to have an amazing year,” Scaramucci reportedly told the Reuters Global Markets Forum in Davos, Switzerland.
Because the event essentially slows down the quantity of BTC entering the market, historically, times after a Bitcoin halving have seen higher prices. Although it is impossible to predict with certainty when the next halving will take place, analysts predict that it will happen in May 2024.
One of the few investing companies, SkyBridge, has put money into cryptocurrencies like Bitcoin, Ethereum, Solana, and others. To offset projected 2022 losses, the corporation also intends to participate in the structured credit market.
“Structured credit, mortgage-backed securities, credit card debt, auto loans — that’s an attractive space again,” Scaramucci said. As of last September, his firm managed $2.2 billion, including $800 million in digital asset-related investments.
In another interview with CNBC, Scaramucci called 2023 a “recovery year” for Bitcoin and predicted the flagship cryptocurrency could reach $50,000 to $100,000 in two to three years. He said:
“You are taking on risk but you’re also believing in [bitcoin] adoption. So if we get the adoption right, and I believe we will, this could easily be a fifty to one hundred thousand dollar asset over the next two to three years.”
Major cryptocurrencies continued their gains over the weekend after breaking over important barrier levels. The price of Bitcoin, the most valuable cryptocurrency in the world, has surpassed $21,000, while Ethereum has risen to almost $1,600. Over the last week, both currencies have increased by around 20%.
The current crypto surge may have been driven by a variety of causes, but the market was able to gain traction when fresh data made public on Thursday by the U.S. Department of Labor suggested that inflation was slowing.
As anticipated, the annual inflation rate dropped from 7.1% in November to 6.5% in December. Inflation decreased by 0.1% month over month as opposed to a 0.1% rise in the previous month. The fluctuating food and energy costs are not included in the core CPI, which decreased from 6% in November to 5.7%.
Risky assets like cryptocurrencies often benefit from lower inflation because it puts pressure on the US Federal Reserve to pause raising interest rates.
Compiled by Coinbold
