A Glimmer of Optimism from Scaramucci

Bitcoin’s performance at the dawn of 2023 has experts buzzing, and none more so than SkyBridge Capital’s founder, Anthony Scaramucci. With a notable rise in Bitcoin’s value, Scaramucci dares to say we’ve escaped the bear market, yet with a caveat: “That is a guess. We don’t know.” Sounds like someone’s been listening to a little too much crypto karaoke.

The Bitcoin Bull Run Explained

In a conversation that took place on April 6, Scaramucci revealed to Yahoo Finance something that might just tickle your investment fancy. He highlighted that every time you held Bitcoin over any rolling four-year period, you’d come out on top against other asset classes like a champion on market day.

• Example: If you jumped in on Bitcoin in 2020, you’d be rolling in it right now.
• While the S&P 500 limped along with a modest 7% increase, Bitcoin skyrocketed close to 70%—from $16,521 to a jaw-dropping $28,060.

Halving: The Game Changer

Looking ahead, Scaramucci points toward the upcoming Bitcoin halving cycle scheduled for early March 2024. Historically, these halving events have set the stage for big price surges. The logic is simple:

• Fewer rewards mean increased scarcity.
• Increased scarcity usually leads to a boost in value—sort of like the last slice of pizza at a party!

Challenges Looming on the Horizon

However, it isn’t all rainbows and butterflies in the crypto cosmos. Currently, cryptocurrencies are navigating choppy waters with regulatory scrutiny tightening around the likes of Coinbase and Binance. With U.S. crypto-friendly banks faltering, the liquidity fright has left institutions anxiously wondering where to turn.

“There are fears that the U.S. is putting policies in place to strangle the relationship between banks and crypto.”

A Cautious Sentiment Shift

Even amid such turbulence, there’s a glimmer of hope: positive sentiment seems to prevail! The Crypto Fear & Greed Index has stepped into greed territory, flirting with peaks not touched since the glory days of November 2021 when Bitcoin hit its all-time high. Looks like investors are feeling a bit more optimistic—maybe they’ll even treat themselves to a fancy dinner or two this time around.