SkyBridge Capital, a global investment firm, is betting that the price of Bitcoin will reach $35,000 by the end of 2023, thanks to a steady recovery in the cryptocurrency market.
Even though Anthony Scaramucci, the founder of SkyBridge Capital, said that this view was “too bullish,” he said that the recent crypto rally could gain more speed with the upcoming “halving” of Bitcoin, which happens every four years and cuts the number of new bitcoins by half.
Scaramucci is said to have said at the Reuters Global Markets Forum in Davos, Switzerland, that SkyBridge would have a great year if bitcoin prices went back up to $35,000.
In the past, when the number of Bitcoins in circulation was cut in half, prices went up because fewer Bitcoins were being put on the market. Even though no one knows when the next halving will happen, experts think it will happen in May 2024.
SkyBridge is one of the few investment firms that has put money into Bitcoin, Ethereum, Solana, and other cryptocurrencies. After losing money in 2022, the company also plans to put money into the structured credit market to make money in 2023.
“That’s an attractive area again,” Scaramucci said about structured credit, mortgage-backed securities, credit card debt, and auto loans. As of September of last year, his company was in charge of $2.2 billion, $800 million of which was invested in digital assets.
In another interview with CNBC, Scaramucci called 2023 a “recovery year” for Bitcoin and said the leading cryptocurrency could reach $50,000 to $100,000 in two to three years. He said:
“You’re taking a risk, but you also believe that people will use bitcoin. So, if we do the adoption right, this could be worth between $50,000 and $100,000 in the next two to three years.”
Over the weekend, the price of some of the most popular cryptocurrencies broke through key resistance levels and kept going up. Bitcoin, the biggest cryptocurrency in the world, is now worth more than $21,000, while Ethereum is worth around $1,600. Over the past week, both coins have gone up by about 20%.
Several things may have caused the recent crypto rally, but the crypto market gained speed after the U.S. Department of Labor released new data on Thursday that showed inflation was slowing down.
As expected, the annual inflation rate dropped in December, going from 7.1% in November to 6.5%. Compared to last month, when it went up by 0.1%, inflation went down by 0.1% from one month to the next. Core CPI, which doesn’t include the volatile prices of food and energy, went down from 6% to 5.7%.
People usually think that lower inflation is good for risky assets like crypto because it puts pressure on the U.S. Federal Reserve to slow down rate hikes.
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