Anthony Scaramucci, founder of SkyBridge Capital, said war or terrorist attacks could lead to a 10% to 15% drop in Bitcoin’s value next year.
In an interview with CNBC published on Thursday, Scaramucci discussed Bitcoin’s nascent phase. He said that the asset will fulfill its role in the market only when the number of users crosses the one billion mark.
“Right now this is going to be a lot more volatile than people want, and until we get to that point people are viewing this as a risk-based business or a risk-based business,”
said. ”
His comments came before Bitcoin fell below $60,000 on Friday amid rising political tensions. The drop followed news of an Israeli missile attack on Iran.
Bitcoin’s decline is mentioned after Rockets
According to ABC News, Israel fired a missile at Iran in retaliation on Friday morning. Iran’s Fars news agency reported that three explosions were heard near a military base in central Isfahan. The Iranian leader reportedly rejected the claims of a missile attack, saying that the explosions were caused by Iran’s air defense system.
In times of political and military conflict, investors tend to be more cautious and look for safe assets to protect their investments. They often turn to assets such as gold and government bonds for safety.
Scaramucci remained optimistic about Bitcoin’s long-term future. The recently launched Spot ETF anticipates things like the entry of major financial institutions and the value of Bitcoin falling to $200,000.
He also dismissed concerns about over-consolidation from ETFs. Today, institutional ownership, including BlackRock, represents less than 10% of the overall Bitcoin market, Scaramucci says.
Scaramucci Increases Bitcoin Price
Scaramucci’s latest Bitcoin price prediction is higher than his previous prediction. Earlier this year, he predicted that Bitcoin could rise to $170,000 by mid-to-late 2025, assuming the price would remain above $45,000 at the time of the close.
The Bitcoin network is going through a technical process known as phase two, which helps slow the pace of new Bitcoin inflows.
This event, scheduled for April 19-20, reduces the miner’s reward for verifying transactions by 50%. This reduction process will continue until the total number of Bitcoins in circulation in the market reaches 21 million.
