Skybridge Capital’s founder, Anthony Scaramucci, has predicted that the price of Bitcoin will hit $ 100,000 before the end of the year based on supply and demand alone. “They don’t have a lot of supply out there and they have very strong demand,” he said. His company currently has over half a billion dollars in Bitcoin.
Skybridge’s founder expects Bitcoin to be $ 100,000 before the end of the year
Skybridge Capital’s founder and managing partner, Anthony Scaramucci, spoke in an interview with CNBC last week about his expectations for Bitcoin price and his company’s investment in cryptocurrency.
Scaramucci notes that he is seeing wild demand for bitcoin as supply dwindles and expects the price of the cryptocurrency to double by the end of the year. The founder of Skybridge Capital noted:
I think we’ll see $ 100,000 in this coin before the end of the year … It’s just a supply and demand situation. They don’t have much supply and demand is very high.
Bitcoin’s price has risen rapidly and has hit several all-time highs over the past week. The cryptocurrency has already gained almost 76% since the beginning of the year. Market capitalization has exceeded $ 1 trillion. At the time of writing, Bitcoin is priced at $ 56,575.
Bitcoin demand has grown rapidly, especially from institutional investors who didn’t exist during the 2017 bitcoin bull run. However, 78% of Bitcoin supply is illiquid, according to blockchain analytics firm Glassnode. The company says: “Currently, 14.5 million BTC are classified as illiquid, so only 4.2 million BTC are in constant circulation that are available to buy and sell.”
Scaramucci warned individual investors: “This is a volatile matter and I want to be careful with individual investors again … Be careful.” Regarding his own wealth management firm, he said:
We like it. We currently have over half a billion dollars in Bitcoin. And of course our Bitcoin fund started in December. It’s done quite well.
Skybridge launched its Bitcoin fund with $ 25 million in equity in December last year. The fund opened to outside investors in January and debuted at $ 310 million. Scaramucci said his firm “could be the forerunner of an avalanche of institutional investors” as orders “for the first quarter of 2021 were built up from a large number of institutions”.
Recently, major companies have been collecting bitcoins, including Elon Musk’s Tesla, who bought $ 1.5 billion in BTC in January. Other big companies that have already invested in Bitcoin include Jack Dorsey’s Square Inc. and mega-insurer Massmutual.
Additionally, Nasdaq-listed Microstrategy had amassed 70,784 bitcoins as of Jan. 27 and completed a $ 1.05 billion convertible bond offer to buy more BTC. A large number of bitcoins are also acquired by mutual funds, including Grayscale Bitcoin Trust and a number of Bitcoin Exchange-Traded Products (ETPs) and Bitcoin Exchange-Traded Funds (ETFs).
What do you think of Skybridge’s prediction? Let us know in the comments below.
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