Benzinga - by Adam Eckert, Benzinga Staff Writer.
SkyBridge Capital's Anthony Scaramucci believes the upcoming Bitcoin (CRYPTO: BTC) halving could put the world’s largest crypto on a path towards $200,000 per coin.
What To Know: Thursday on CNBC’s “Squawk Box,” Scaramucci suggested that Bitcoin could soon break through new highs. He expects the crypto to trend higher over the next 12 months.
“Long term, with the halving coming this week … I think this thing trades to $170,000, possibly to $200,000,” Scaramucci said.
Bitcoin miners receive a reward for successfully mining transactions. The amount of rewards miners receive is set to be cut in half in the coming days. Crypto markets have historically rallied in the months following a halving event.
Related Link: Bitcoin Halving: Will Institutions And “Smart Money” Upend Past Price Rallies?
Scaramucci told CNBC the current downside risk in Bitcoin is about 10% to 15%, given geopolitical uncertainty, but the upside is significantly higher, he said, citing heavy demand due to recently approved Bitcoin ETFs and new players coming into the space.
Scaramucci previously pointed out that Bitcoin tends to quadruple after a halving. Although Bitcoin is 14 years old, it’s still very young in terms of adoption, he said. Until Bitcoin reaches 1 billion users, the asset will remain very volatile, he added.
“Over a rolling four-year period of time, no one has ever lost money in Bitcoin. If you’re willing to hold the asset for say five years … I think you do very well,” Scaramucci said.
If you are willing to hold the asset even longer, you could be in for some ridiculous gains, per Scaramucci’s longer-term view. He told CNBC he expects Bitcoin to eventually eclipse the market cap of gold, which is currently estimated at around $16 trillion. Bitcoin’s current market cap is approximately $1.25 trillion.
“The acceptance regulatorily is going to allow people to put it in the portfolio. A 1% position in these global portfolios takes it there,” Scaramucci said.
$BTC Price Action: Bitcoin was up 5.27% over a 24-hour period, hovering around $63,400 at the time of publication, according to Benzinga Pro.
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