Bitcoin could hit as much as $US200,000 ($311,000) by the end of this year, fuelled by surging inflows into exchange-traded funds, while pressure on the greenback from Donald Trump’s erratic policymaking will drive more into the digital currency.
That’s the view of Trump’s former communications director and hedge fund boss Anthony Scaramucci, who is a vocal supporter of Bitcoin.
Bitcoin has been having its moment in the sun since Trump took charge, and Scaramucci, now an outspoken critic of the President, acknowledges this.
On the campaign trail, Trump branded himself as the pro-crypto candidate and promised a “Crypto Strategic Reserve” that could see the US Treasury become a buyer of cryptocurrency.
Even so, the cryptocurrency fell along with the April sharemarket turmoil, but is now back above $US100,000.
It hit a record $US106,000 last December.
Scaramucci says he was a Bitcoin sceptic but changed his mind after doing his homework. In 2021, his fund launched the SkyBridge Bitcoin Fund.
Not only does SkyBridge invest in the cryptocurrency in its funds, it holds Bitcoin on its balance sheet.
In 2022 during the downturn in the Bitcoin, the then-FTX boss Sam Bankman-Fried injected around $US45m into Scaramucci’s fund. (Scaramucci has previously said he “made a mistake” doing business with the now jailed Bankman-Fried.)
Scaramucci’s bullish outlook on the cryptocurrency is based around the global take-up of Bitcoin that tops out at 21 million units. “I always tell people the same thing, they’ve got to do homework,” he says.
He estimates Bitcoin, which can be broken up, is spread across 380 million global wallets.
He anticipates it could get to as much as 500 million by the end of the year – backed by demand from ETFs.
“If you can get to 500 million wallets by the end of the year, and I believe you will, there are so many positive forces that will create that,” he said.
“Even Trump uncertainty decouples people from sovereign money and to think more about electronic money”.
“I do think it could get to $US200,000 by the end of the year. Our price target is 180,000 to 200,000.”
Anthony Scaramucci will be headlining 2025 Sohn Hearts & Minds investment conference in Sydney on November 14.
This article was originally posted by The Australian here.
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