The founder of Skybridge Capital has doubled down on his $100K bitcoin price prediction. He also believes that bitcoin could reach $500K a coin in the long run. “But we’ve got some work to do here from a regulatory perspective,” he stressed. The executive also advised how an average investor should get into bitcoin.
Skybridge Capital’s Founder on Bitcoin Price
The founder of investment management firm Skybridge Capital, Anthony Scaramucci, talked about the future outlook for bitcoin Friday in an interview with Melissa Francis on Magnifi by TIFIN.
Scaramucci expected the price of BTC to reach $100,000 by the end of last year. However, he admitted that he “did not assess the regulatory environment appropriately” after the U.S. Securities and Exchange Commission (SEC) approved bitcoin futures exchange-traded funds (ETFs).
“I thought once you had the bitcoin futures [ETFs], you’d end up with the cash pretty immediately. Too much political headwind for that,” he explained. Instead, BTC got corrected down to the $40,000 level from its all-time high of $68,892 based on data from Bitcoin.com Markets.
Nonetheless, the Skybridge Capital founder believes that the price of bitcoin could reach $100,000 this year. He opined:
Could it get there this year? Yes. Is it likely to get there over two years? I’m very confident of that. But we’ve got some work to do here from a regulatory perspective.
“We got to get the markets to calm down a little bit. We’ve got to get through Covid. But it’s not going anywhere,” he stressed.
How an Average Investor Should Get Into Bitcoin
The Skybridge Capital founder was also asked what he would do if he were an average investor who has not invested in crypto. “I would buy some,” he promptly replied. However, he added, “I would average in.”
While cautioning that there will be volatility, Scaramucci noted:
The only way you can handle technology like this is to dollar-cost average and buy a little every month.
Regarding what percentage of a paycheck an average investor should put into bitcoin, Scaramucci advised: “I would pick a number that you are comfortable with and buy a little every month.” He recommends putting between 1% and 4%.
“I put 4% of Skybridge money into bitcoin,” he shared. “I started off with a 4% cost position … If you talked to me at the peak, it ended up being 22%,” he detailed, adding that it then “traded down to about a 15% position.”
He continued: “I think you’ve got to be part of that. I think it would be a mistake to be under-invested or zero-invested in blockchain and cryptocurrency.”
$500K per Bitcoin
Scaramucci also commented on how high the price of bitcoin could reach long term, reiterating his previous prediction that BTC could reach $500,000 a coin.
Noting that “This is early adopting technology,” the Skybridge Capital executive warned: “This will be very volatile. There’ll be periods of time where bitcoin will crash, down 50 plus percent.” Nonetheless, he emphasized:
But if you’re willing to zoom out and look at the long term chart and look at the adoption story, could bitcoin get to a half a million dollars a coin? I believe it will.
Scaramucci has been bullish on bitcoin for quite some time. In November last year, he encouraged investors to start buying BTC, stating: “This is very, very early for people … I’m trying to do my best to explain to them why they need to own this right now.”
Tags in this story
What do you think about Scaramucci’s advice? Let us know in the comments section below.
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.
Image Credits: Shutterstock, Pixabay, Wiki Commons