Anthony Scaramucci, the former White House communications director and founder of Skybridge Capital, believes that institutional demand for Bitcoin and cryptocurrencies will drive the crypto market recovery in the long term.
Despite the sharp decline in cryptocurrencies this year, Anthony Scaramucci, founder of global alternative investment firm Skybridge Capital and former White House communications director, remains optimistic about the future of the crypto industry.
During a interview On CNBC, Scaramucci discussed how institutional interest could boost the Bitcoin and cryptocurrency market.
In his opinion, The exposure that large financial corporations are offering to their clients and investors will produce a “demand shock” for Bitcoin, which will generate more interest and increase the demand for the cryptocurrency in the market. This, in turn, could have a positive impact on the price of BTC, which could recover its value significantly in the long term.
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Bitcoin has good fundamentals to recover its value in the long term
For Anthony Scaramucci, Bitcoin has very good fundamentals that are motivating companies from almost all industries to enter the crypto market.
Institutional demand for BTC now appears to be back. Despite the sharp decline in cryptocurrencies this year, major companies such as Fidelity Investments and BlackRock have begun offering their clients exposure to Bitcoin as an alternative asset.
During the interview, Scaramucci highlighted the moves that these two companies are making, Fidelity Investments and BlackRock to increase their clients' exposure to Bitcoin.
In the case of Fidelity Investments, the American company specializing in asset management and pension funds has developed a product that allows companies Offering Bitcoins in Retirement PlansOne of the first companies to adopt Fidelity's services to offer its employees the option to invest in BTC through 401(k) plans was MicroStrategy, in April of this year.
On the other hand, Scaramucci also spoke about the recent Bitcoin offering that BlackRock has launched for its institutional investors. The founder of Skybridge Capital said that the investment manager, considered the largest in the world, is offering a private trust that will give its clients the opportunity to invest in Bitcoin. Invest directly in cryptocurrency most important in the market.
As for retail investors, Scaramucci said patience is key. «Fight your own fear, be patient and stay in it for the long haul», the investment expert commented, calling on investors to analyze the macroeconomic environment and not to withdraw from their current positions.
Among his comments, the Skybridge Capital founder also argued that it is possible for the price of Bitcoin to reach $300.000 per unit within the next 6 years.
The Merge, on Ethereum, will also boost institutional interest
In addition to institutional interest in Bitcoin, Scaramucci also discussed Ethereum's next major upgrade, The Merge, which will turn the blockchain network into a Proof of Stake consensus protocol-based blockchain, in order to be more energy efficient.
“Ethereum is about to merge and reduce its gas fees and transaction fees”, Scaramucci said, pointing to this as one of the main reasons why the price of ether (ETH) has risen in recent weeks and why institutional interest in the digital asset could increase.
At the time of writing, Bitcoin (BTC) is showing a moderate recovery in value, trading around $24.200 per unit.
The market-leading cryptocurrency hit a two-month high yesterday, trading back above $25.135 per token, while ETH touched $2.017 per token this week, hitting a 3-month high.
Continue reading: Bitcoin, Dogecoin and Ethereum are the most popular cryptocurrencies among Americans
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