Former White House Director of Communications Anthony Scaramucci , the founder of global alternative investment firm SkyBridge Capital, has revealed that despite the massive sell-off in cryptocurrency markets this week, he believes the bitcoin bull run isn’t over.
Speaking to CNBC, the investor pointed out that if we zoom out on bitcoin’s price history, massive sell-offs such as the one we saw this week are common. Per his words, the cryptocurrency market was filled with expectations, and “most of the smaller players are using tremendous amounts of leverage.”
He noted that both bitcoin and altcoins were “decimated” over the amount of liquidations that were triggered on the market. Available data shows over $9 billion were liquidated as the price of bitcoin and most top altcoins plunged, as the value of the collateral users had dropped to the point platforms sold it on the market to prevent losses.
These forced liquidations, according to analysts, added increased selling pressure and saw crypto prices drop to levels where most did not want to sell, hence the V-shaped recovery top cryptocurrencies have been seeing.
Per Scaramucci, bitcoin is bouncing back in the long-term as there will be a “flight to quality in the crypto space.” Bitcoin, it’s worth noting, surged from a $32,000 low to $39,000 at press time as many quickly bought the dip – perhaps even SkyBridge Capital itself.
Scaramucci also addressed some of the negative factors affecting the cryptocurrency market, including Tesla no longer accepting bitcoin payments over environmental concerns, JP Morgan revealing in a report institutions are running towards gold and not cryptoassets, and China banning financial institutions from dealing in crypto.
The investor noted that his research shows more than 40% of the energy used to mine bitcoin is renewable, and the overall carbon emission from the cryptocurrency is equal to 0.13% of the world’s carbon emissions. Musk’s concerns with BTC, he said, could be related to the company receiving carbon credits.
China, he said, may not accept cryptocurrencies because they have a “closed economic system” and may instead only allow a digital yuan to circulate within its markets. Bitcoin, he said, is a “fully robust monetary network scaling to over 110M users right now, possibly 1B users by 2025.”
It’s worth noting SkyBridge Capital has predicted the price of bitcoin will surpass $100,000 later this year.
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