Crypto Jeb, a well-known cryptocurrency analyst, recently shared his insights on why Bitcoin is set to experience a significant rally, potentially reaching over $70,000 by the end of next year. He attributes this bullish outlook to two major factors: the actions of BlackRock, the world’s largest asset manager, and the Federal Reserve’s monetary policies.
Crypto Jeb began by revisiting the 2020 and 2021 bull market, stating that it was fueled by a combination of the pandemic and the Federal Reserve’s quantitative easing (QE) measures. He says the QE program involved the purchase of treasuries and mortgage-backed securities, injecting liquidity into the U.S. economy, and that this led to an influx of cash into the retail sector, as people received stimulus checks and started investing in Bitcoin. He mentions that the low-interest rates also encouraged borrowing to invest in Bitcoin, contributing to its rally from $20,000 to $69,000.
Furthermore, he says that Larry Fink, the CEO of BlackRock, was initially skeptical about Bitcoin but has since changed his stance. BlackRock has taken steps to launch a spot Bitcoin ETF, which Crypto Jeb believes will be a game-changer. He expects a spot Bitcoin ETF to make Bitcoin accessible to average Americans and their financial advisors, potentially leading to hundreds of billions, if not trillions, of dollars flowing into Bitcoin within the first year of the ETF’s existence. He argues that this influx of capital will legitimize Bitcoin as a long-term investment, silencing critics and skeptics.
As for the Federal Reserve’s monetary policies, he thinks that they have been instrumental in Bitcoin’s past performance and will continue to play a significant role. The Fed has started to roll back its QE measures, known as quantitative tightening, and has paused the effective federal funds rate at 5.25%. Crypto Jeb expects that the Fed will eventually lower interest rates and possibly reintroduce QE, especially if there are rolling recessions in the coming years. These actions would serve as a catalyst for Bitcoin’s growth, potentially pushing it to new all-time highs.
Based on these factors, Crypto Jeb is confident that Bitcoin will trade north of $60,000 and could even reach between $70,000 and $100,000 by the end of next year. He believes that the timing of these events could coincide with Bitcoin’s “halving season,” providing an additional boost to its price.
Anthony Scaramucci, SkyBridge Capital’s founder and managing partner and a former White House Communications Director, recently shared his bullish outlook for Bitcoin on the “OPTO – Invest in Innovation” podcast. He believes that Bitcoin has the capacity to grow into a $15 trillion asset, and may even surpass gold as a wealth storage mechanism. However, he doesn’t foresee Bitcoin taking the place of fiat currencies. With Bitcoin’s capped supply of 21 million coins, Scaramucci estimates that its value could soar to more than $700,000 per coin, a substantial increase from its present value of approximately $28,000.
SkyBridge Capital has a significant Bitcoin holding, and Scaramucci also discussed the cryptocurrency’s geopolitical ramifications. He posited that countries in opposition to the U.S. could opt for transactions in Bitcoin or cryptocurrencies backed by gold, especially if the U.S. persists in using the dollar to exert global influence. Scaramucci also took the opportunity to critique the current financial system, describing it as flawed and advocating for a comprehensive, long-term reform.
Subsequently, Scaramucci clarified a previous misstatement, explaining that he had never claimed Bitcoin’s value would escalate to $31 million per coin. Instead, he expects the digital asset to climb to a range of $150,000 to $250,000 in the forthcoming cycle, and possibly reach as high as $750,000 by the decade’s end.
