Bitcoin Bull Market to Start Once US Inflation Drops to 4-5%: Scaramucci
Anthony Scaramucci – the Founder of SkyBridge Capital and former White House official – believes cryptocurrencies will revive once the Federal Reserve stops raising interest rates.
He thinks this will happen once inflation in the United States dropped back down to 4-5%.
The Surge Could be on the Horizon
The financier thinks the US central bank will halt the interest rate hikes before reaching the 2% inflation goal and, thus, stimulate a price expansion for risk assets, such as cryptocurrencies:
“I do believe that the Fed declares victory at 4% to 5% inflation. If I’m right, there will be a resurgence in the market. There’ll be a lot of short covering in crypto, and there’ll be a rebirth of risk assets.”
Recall that January’s CPI numbers showed the inflation in the USA in December stood at 6.5%, while the peak was marked in June last year when the rate reached a 40-year high of 9.1%.
Scaramucci’s investment management firm – SkyBridge Capital – has around 10% exposure to bitcoin through the SkyBridge Multi-Adviser Hedge Fund Portfolios Series G fund. He said the company might focus on other assets if the primary cryptocurrency starts a bull run.
The American, who briefly served as the White House Director of Communications, is among the most prominent bitcoin advocates and kept his faith throughout the continuous market decline.
However, he has advised people to properly scale their BTC investments and allocate not more than 5% of their total savings. Thus, they could enjoy solid profits if the asset skyrockets in the future, while potential losses would be insignificant in case of a price shrink (which he doubts).
‘I got Burned by Sam’
Scaramucci, who once had a close relationship with the former CEO of FTX – Sam Bankman-Fried – and members of his family, shed more light on the losses that the exchange’s collapse triggered for his company.
SkyBridge accepted $45 million in funding from SBF shortly before the demise of the platform and used the cash to purchase $10 million worth of FTT tokens. The firm later sold the stash at a loss of $9.6 million.
“I don’t shy away from it. I think it’s important for people who believe in capitalism and important for people that are risk-takers to understand what happened. I’m not going to be the person that takes no more risk in the future because I got burned by Sam,” Scaramucci stated.
He recently compared SBF to “the Bernie Madoff of crypto,” saying “the ninth circle of Hell” is reserved for people like him.
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