Anthony Scaramucci says the Bitcoin market could see fresh price declines, forecasting waves of volatility for the leading cryptocurrency.
The SkyBridge Capital CEO revealed he won’t be buying the dip, even as BTC price retreats from highs of $44,400.
He notes that Bitcoin is still an “early adoption story” and believes its price will grow long-term.
SkyBridge Capital CEO Anthony Scaramucci believes Bitcoin is headed for more volatility, even as he predicts long-term holders of the cryptocurrency will still be profitable amid further adoption and use of the cryptocurrency.
The SkyBridge chief noted this in an interview with CNBC’s “Crypto Night in America” on Thursday.
Bitcoin price dipped below the $40,000 level earlier this week before rallying over the last three days to top around $44,400. The weakness in the broader stock market has also seen the digital gold slip to support around $41,790.
While many analysts remain bullish for the cryptocurrency long term, there are suggestions Bitcoin’s “lockstep” trading with traditional stock markets could see it dip further, with investor sentiment likely weighed by the Fed’s tightening cycle.
In the interview, Scaramucci was asked what he thought is next for the Bitcoin price after its plunge from the all-time highs of $69,000 reached last November.
Acknowledging the nosedive in BTC value, he told CNBC that he expects there to be more consolidation.
"I definitely think there is a lot of leverage in the system and there’s been massive deleveraging," he explained.
He opined that some of the sloppiness seen in the market was linked to the crackdown in China last year, with many holders likely flushed out by Chinese exchanges at the end of 2021 due to the ban on crypto trading.
Scaramucci also commented on his firm's plans during the current dip in Bitcoin price, indicating that the firm would not be buying the dip.
He noted that SkyBridge had “bought on the fringe a little and added to [its] multi-coin and Polygon exposure. However, it wasn’t planning to add any more or take away from its substantial Bitcoin stake, he added.
On the issue of Bitcoin volatility, the SkyBridge chief said he sees the market experiencing “some sloppiness and waves of volatility. This should see investors jump on and off the market, which is expected as Bitcoin is an “early technology adoption story.”
Even then, Scaramucci is bullish on Bitcoin’s long-term outlook and believes long-term holders will do well.
Bitcoin was trading around $42,486, down about 4% in intraday deals and nearly 10% in the red over the past two weeks.