The founder of Skybridge, Antony Scaramucci named 2023 a “recovery year” for Bitcoin and believes that in two to three years, the leading cryptocurrency may trade at $50,000 to $100,000. “You are taking on risk but you’re also believing in [bitcoin] adoption. So if we get the adoption right, and I believe we well, this could easily be a fifty to one hundred thousand dollar asset over the next two to three years,” Scaramucci stated.
Jean-Baptiste Graftieaux, a global CEO of cryptocurrency exchange Bitstamp, also shares a similar take, as he said last the week that the next bull run could come over the next two years. He cited growing interest from institutional investors. Crypto investors are attempting to predict the potential timing of the next Bitcoin bull run after a turbulent 2022.
The whole cryptocurrency market lost around $1.4 trillion in value in 2022 as a result of bankruptcies, liquidity problems and the collapse of the FTX exchange. Investors watch the macroeconomic outlook Despite a modest increase at the beginning of the year, similar-risk assets like equities, experts believe that Bitcoin has bottomed but is unlikely to retest its all-time high of around $69,000.
Investors are keeping an eye on the macroeconomic outlook because Bitcoin is strongly linked to risk assets such as stocks – particularly the Nasdaq. The Federal Reserve’s interest rate hikes, as well as other macroeconomic developments, have impacted stocks and cryptocurrencies.
The fed started an aggressive interest rate hike path last year to control inflation, which led to a plunge in the price of risk assets like Bitcoin. Industry experts claimed that Bitcoin might benefit from a change in the macroeconomic outlook.
BTC was trading at $20,813 at the time of publication, slightly up over the previous 24 hours. Since the beginning of 2023, the top cryptocurrency has recorded 13 green days out of 16. “Everybody is a long-term investor until they have short-term losses.”
The crypto market has recently shown signs of recovery, with Bitcoin reaching higher highs than anticipated in the short term. This followed the announcement that the inflation rate in the United States of America was slowing.
More investors became bullish on the market as a result of the news. Scaramuccia’s Skybridge Capital predicts that the price of Bitcoin will reach $300,000 in the next six years
After considering several factors. Scaramucci believes ‘two major things have happened on the institutional side’ that will likely generate demand for bitcoin.
He referred to the financial services company Fidelity Investments as one of the supporting arguments for his prediction. Fidelity Investments is allowing businesses to offer employees the option of investing up to 20 percent of their retirement and savings plan in Bitcoin.
In Scaramucci’s words, “Fidelity is allowing for their 401k products to offer Bitcoin.” He also stated that Blackrock would be another factor in Bitcoin’s recovery. Blackrock recently
announced a partnership with Coinbase to provide clients with private trust through which they can invest in Bitcoin.
It is worth noting that Blackrock is an investment management firm that manages $8.5 trillion in assets. Talking about this partnership and its positive impacts on the crypto market, Scaramucci said, “Finally, CEO Larry Fink is seeing institutional demand for digital assets. Otherwise, he wouldn’t be setting up those products, and he wouldn’t be teaming up with Coinbase… When this stuff happens, I want to remind people that there are only 21 million bitcoins out there, and you will have a demand shock with very little supply.”
Scaramucci also mentioned the Lightning Network, a long-awaited Bitcoin network upgrade. This upgrade will add a two-layer payment protocol on top of Bitcoin. With this upgrade, the number of blockchain applications is expected to increase. The network’s scalability is also expected to improve.
In this context, Scaramucci stated that there would be many more commercial activities’ on Bitcoin. Talking about the recent increase in Ethereum’s value, Scaramucci said that Ethereum is about to merge and reduce its gas fees and transaction fees.
And that’s one of the reasons why Ethereum is up about 70 plus percent over the last five and a half weeks.” He also believes that the global economy can return to its strong 2019 ‘Fourth Quarter’ status within the next 6 to 12 months. He was quoted saying, “I think that’s the message I’m trying to send to investors; just relax; we see a pretty optimistic scenario for BTC, ETH, ALGO, and Solana (SOL) over the next 12 to 24 months.”
Tai in the meantime mentioned the start of a bull run is “probably a year away,” saying the after results of the FTX collapse may proceed to be felt for an additional six to 9 months.
Jean-Baptiste Graftieaux, the international CEO of cryptocurrency alternate Bitstamp, instructed CNBC final week that the following bull run might come over the following two years, citing rising curiosity from institutional buyers.
However, Demirors warned that the occasions over 2022 “have caused tremendous reputational damage to the industry and to the asset class,” including that “it will take some time for that confidence to return.”