Scaramucci Anticipates Bitcoin Bulls Eyeing $100,000 Surge Following SEC’s Approval of First U.S. Spot Bitcoin ETF
In a significant development for the cryptocurrency market, the U.S. Securities and Exchange Commission (SEC) recently approved the first-ever U.S. spot bitcoin exchange-traded fund (ETF), sparking optimism among cryptocurrency enthusiasts and investors. Despite the initial lack of substantial movement in Bitcoin’s price following the news, several industry insiders are predicting a substantial surge in the digital currency’s value in 2024.
The SEC’s approval marks a pivotal step for the cryptocurrency market, as it opens the door for a more diverse range of investors to gain exposure to Bitcoin. The regulatory body greenlit 11 products, emphasizing that this decision does not imply a willingness to approve listing standards for crypto asset securities.
Anthony Scaramucci, founder of SkyBridge Capital, expressed his enthusiasm for the breakthrough, stating that it is not only significant for Bitcoin as a digital asset but represents a broader narrative for digital property in general. Speaking at the CfC conference in St Moritz, Scaramucci revealed that he has been increasing his exposure to various cryptocurrencies over the past year.
“I think this is a really big breakthrough for bitcoin as a digital asset, it’s a much broader story for digital property in general,” Scaramucci told CNBC’s Arjun Kharpal. He went on to predict that Bitcoin will likely reach its all-time high by the end of the year and sees the cryptocurrency hitting $100,000 within the next year.
However, Scaramucci acknowledged the unpredictability of the market, stating, “I have been wrong so many times before.” Drawing parallels with the 2004 approval of the first spot gold ETF, he highlighted that although it took years for the development to translate into major price gains for gold, the precious metal eventually experienced a substantial increase in value.
Scaramucci sees Bitcoin as “digital gold,” suggesting that it could capture a significant portion of the gold market capitalization. With the market cap of gold currently standing at $13 trillion, he believes there’s no reason why Bitcoin couldn’t be 50% or 60% of that market capitalization, implying a tenfold increase in price over the next decade.
While many crypto investors have drawn comparisons between Bitcoin and gold, it’s essential to note that past price performance has shown Bitcoin trading in correlation with stocks, particularly the tech-heavy Nasdaq, rather than gold. However, Bitcoin did outperform the Nasdaq, other risk assets, and gold in 2023, primarily fueled by speculation regarding the Federal Reserve’s potential policy shifts.
As the cryptocurrency market continues to evolve, the approval of the first U.S. spot bitcoin ETF could be a crucial catalyst for Bitcoin’s future price movements. Investors and enthusiasts alike will be closely monitoring the market dynamics in anticipation of the potential surge towards the $100,000 mark predicted by prominent figures like Anthony Scaramucci.
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