On January 12, 2024, Anthony Scaramucci, the founder of Skybridge Capital, appeared on Bloomberg TV’s “Bloomberg Markets,” where he shared his bullish views on the markets for 2024, discussed the newly launched spot Bitcoin ETFs, and commented on the legal troubles facing former President Donald Trump.
Market Outlook for 2024
Scaramucci expressed a bullish stance on the markets for 2024. He observed that despite the drop in rates this year and the market’s modest response, there are reasons to remain optimistic. He noted that the anticipation of rate declines fueled last year’s market run-up. Scaramucci advised against betting against the market if the Federal Reserve continues to trend towards lower rates throughout the year. He highlighted that the market is not historically too expensive and pointed to significant technological innovations as reasons for his positive outlook.
Spot Bitcoin ETFs and Cryptocurrency Space
Discussing the advent of spot Bitcoin ETFs, Scaramucci identified three key trends observed from Skybridge’s perspective.
First, he noted substantial selling of Grayscale Bitcoin Trust, attributing it to investors taking profits or losses and then swapping into lower-priced ETFs. Second, he mentioned the selling pressure from the bankruptcy estate of FTX, coinciding with the ETF announcement. Scaramucci views this as a temporary phase and expects the supply overhang to clear in the coming days, leading to an upward trend for Bitcoin. And lastly, he pointed out the ‘quiet period’ for Wall Street, which has temporarily halted marketing efforts for these ETFs but is expected to resume soon.
Bitcoin’s Long-Term Potential
Scaramucci speculated on Bitcoin’s long-term potential, comparing it to the market capitalization of gold. He suggested that Bitcoin could reach a market cap close to half of gold’s, around $7 trillion, by the end of the decade. This projection is based on the current global adoption rate of Bitcoin, which he likened to the early stages of the internet.
Donald Trump’s Legal Troubles
Turning to politics, Scaramucci discussed former President Donald Trump’s ongoing legal challenges. He expressed a contrarian view, suggesting that Trump’s legal issues could derail his candidacy. Scaramucci drew parallels with historical figures like Al Capone and John Gotti, who seemed untouchable until they faced legal repercussions. He highlighted the significance of Mark Meadows, Trump’s former Chief of Staff, as a chief witness in the insurrection case, underscoring the severity of Trump’s legal situation.
