Bitcoin remains volatile despite $103k milestone: Scaramucci

SkyBridge Capital founder Anthony Scaramucci shared a measured perspective on Bitcoin’s volatility amid recent price increases.

Speaking to Yahoo Finance, Scaramucci emphasized the importance of long-term investment horizons and institutional adoption of Bitcoin (BTC). He detailed both the risks and opportunities in the current crypto market environment.

“Bitcoin is a type of asset, I always tell people, if you’re going to buy Bitcoin, you should hold it for four years,” Scaramucci said.

Scaramucci draws attention to Bitcoin’s recent pullback

During the conversation, Scaramucci noted Bitcoin’s pullback from its recent peak of around $103,900. Drawing from historical experience, he reminded the audience of Bitcoin’s most severe decline of 82%. He also recalled the difficult period in December 2022, when prices dropped to around $16,000-$17,000.

He also noted that any four-year period with ups and downs has historically produced positive returns despite the fluctuations.

Scaramucci sees recent price milestones as indicators of Bitcoin maturing into mainstream institutional investment. He stated that this development should have happened sooner, but was delayed due to regulatory obstacles under the administration of Gary Gensler, chairman of the US Securities and Exchange Commission.

The recent approval of cash ETFs and growing adoption by Wall Street provides what Scaramucci sees as a key support base for Bitcoin prices. He draws a parallel between Bitcoin and gold, suggesting that Bitcoin has the potential to increase tenfold if it reaches gold’s market value.

While discussing his new book, “The Little Book of Bitcoin,” Scaramucci revealed an interesting disagreement with MicroStrategy’s Michael Saylor over appropriate portfolio allocation. Scaramucci’s 2% allocation proposal was criticized by Saylor as being too conservative.

Looking forward, Scaramucci argues that while significant price corrections remain possible, the institutional framework that now supports Bitcoin creates a more stable investment environment than in previous cycles.