SkyBridge Capital founder Anthony Scaramucci has offered a balanced view on Bitcoin’s volatility. In an interview with Yahoo Finance, he emphasized the significance of a long-term investment approach and institutional adoption.
Scaramucci stated that Bitcoin is an asset for which a four-year holding period is advisable. He pointed out the recent pullback from Bitcoin’s peak of around $103,900, recalling its historical 82% drawdown and the tough period in December 2022 when prices hit lows of $16,000 – $17,000. However, he noted that historically, any rolling four-year period has shown positive returns despite the volatility.
He regards the recent price milestones as signs of Bitcoin’s progress towards mainstream institutional investment. The approval of cash ETFs and increasing Wall Street acceptance are seen as providing a fundamental price support. He drew a comparison with gold, suggesting Bitcoin could potentially increase tenfold if it reaches gold’s market cap.
Regarding portfolio allocation, Scaramucci’s 2% recommendation differed from MicroStrategy’s Michael Saylor, who criticized it as too conservative. Looking ahead, Scaramucci believes that while price corrections are still possible, the current institutional framework makes Bitcoin’s investment environment more stable than in previous cycles. Overall, he reiterated that Bitcoin remains a volatile asset.
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