Bitcoin heading for $500,000? Anthony Scaramucci explains how
Bitcoin at $500,000 is a trend that is gaining popularity among major investors. Stakeholders in the crypto space like Cathie Wood have indicated that they believed the digital asset could hit the half-million dollar mark. They don’t expect this to happen in a year or two, of course, but do believe it’s an inevitable end for the cryptocurrency pioneer.
Anthony Scaramucci, the famed CEO of SkyBridge Capital, has revealed that he also shares this prediction for the cryptocurrency. Scaramucci gives his reasons and timeline for this in a recent interview with Kitco News.
Bitcoin on its way to $500K
Scaramucci shared with Kitco News that he sees the price of bitcoin reaching $500,000. Basically, the reason for this falls on the digital asset adoption trend. This trend has been compared to that of the Internet in the 1990s, which saw accelerated growth over the next decade. BTC has had a more accelerated timeline, so the next five years would mean exponential growth if it holds on to its current trend.
This accelerated adoption has resulted in the value of the digital asset growing very rapidly in a short period of time. The growth on the four- to five-year chart shows unprecedented levels of growth for bitcoin.
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“Bitcoin has fallen 10 times by at least 50% since 2012, Scaramucci said. In the past year we’ve had two 50% dips, the most recent obviously but also one in May 2021, so if you’re long Bitcoin you should subject yourself to this kind of volatility move.
However, Scaramucci did not provide a timeline for when he believes the price of bitcoin will eventually reach $500,000.
The downward trend is not going to last
Scaramucci also addressed the recent downtrend that bitcoin and the market in general had been experiencing. Losing a lot of value in a short period of time is not new to the market due to its highly volatile nature and the CEO explained that this is nothing to worry about. The CEO told Kitco News that the current downtrend will not last and bitcoin will recover.
BTC trades north of $37,000 | Source: BTCUSD on TradingView.com
He also stressed the need to look at the long term. Add that those who hold for the long term will get the most reward, comparing bitcoin to the years Amazon stocks were in a downtrend.
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“I just want to point out that in Web 1.0, if the same kind of situation occurs for Amazon, if you were wise enough and disciplined enough to hold onto Amazon and let that company take full advantage of the network effects associated with it , you did a really good job, and I think that’s going to happen with Bitcoin as well,” said the CEO.
What prompted the sell-off that started the downtrend, the CEO said is hard to say. However, the digital asset “is now very closely correlated with higher-growth, higher-risk Nasdaq stocks.”
Featured image from TIME, chart from TradingView.com