Skybridge Capital is Predicting Bitcoin Gets to $35k This Year But is That Hope Over Realism?
SkyBridge Capital, a global investment firm, is betting that Bitcoin will reach $35,000 by 2023 due to a sustained recovery in the crypto market.
SkyBridge Capital founder Anthony Scaramucci admitted that this view was “overly bullish” but said that the recent crypto rally could gain momentum with the upcoming Bitcoin “halving”, which occurs every 4 years and reduces the number of bitcoins available by half.
‘If bitcoin could trade again to $35,000 SkyBridge would have an incredible year.’ Scaramucci reportedly stated to the Reuters Global Markets Forum, Davos, Switzerland.
The Bitcoin halving event has historically been followed by higher prices. This is because it slows down the supply of BTC to the market. Experts predict that the next Bitcoin halving will be in May 2024. However, it is impossible to know exactly when this will happen.
SkyBridge is one of the few investment companies that has invested in cryptocurrency, including Bitcoin, Ethereum and Solana. SkyBridge plans to also invest in structured credit markets to generate 2023 returns, after its losses in 2022.
Scaramucci stated, “Structured Credit, Mortgage-backed Securities, Credit Card Debt, Auto Loans — that’s an attractive area again.” His firm had $2.2 billion in assets, with $800 million of digital asset-related investments.
Scaramucci also spoke to CNBC and called 2023 a “recovery year” for Bitcoin. He predicted that the cryptocurrency’s flagship currency would reach $50,000-100,000. He stated
“You’re taking on risk, but you also believe in [bitcoin] adoptive. If we do the adoption correctly, which I believe we will be, this could easily turn out to be a fifty-to-one hundred thousand dollar asset in the next two to 3 years.
Major cryptocurrencies broke through key resistance levels over the weekend and extended their rallies. Bitcoin, the largest cryptocurrency in the world, has surpassed the $21,000 mark, while Ethereum is at $1,600. Over the last week, both coins have seen a 20% increase in value.
Although a variety of factors may have contributed to the recent crypto rally, the market gained momentum following new data from the U.S. Department of Labor on Thursday that indicated a cooling in inflation.
The December annual inflation rate was 6.5%, down from 7.1% in November. Inflation decreased 0.1% month-over-month compared to 0.1% last month. Core CPI, which doesn’t take volatile food or energy prices into consideration, dropped to 5.7% in November from 6%.
As it puts pressure on US Federal Reserve to slow rate increases, lower inflation is often regarded as a bullish sign for crypto and risk assets such as crypto.