Global investment firm SkyBridge Capital is betting that bitcoin will reach $35,000 price level by the end of 2023thanks to a sustained reversal in the cryptocurrency market.
While admitting that this view was “overly bullish”, SkyBridge Capital founder Anthony Scaramucci said that the recent crypto rally could gain further momentum with the upcoming bitcoin “halving”, which occurs every 4 years and halves the number of new bitcoins released.
“If bitcoin can get back to $35,000, SkyBridge is going to have a bumper year,” Scaramucci reportedly told the Reuters Global Markets Forum in Davos, Switzerland.
Historically, bitcoin’s halving was followed by periods of rising prices, as this event effectively slows the supply of BTC to the market. Although it is not possible to know exactly when the next halving will occur, experts believe that May 2024 is a likely date.
SkyBridge is among the few investment companies that have invested in cryptocurrencies, namely Bitcoin, Ethereum, Solana, and others. The company also plans to invest in the structured credit market in order to boost 2023 returns after its 2022 losses.
“Structured credit, mortgage-backed securities, credit card debt, auto loans — that’s an attractive space again,” Scaramucci said. Last September, his company had $2.2 billion under management, including $800 million in investments related to digital assets.
In another interview with CNBC, Scaramucci called 2023 a “year of recovery” for bitcoin and predicted that Featured Cryptocurrency Could Hit $50,000-100,000 within two to three years. He stated :
“You take risks but you also believe in adoption [du bitcoin]. So if the adoption is good, and I believe we will, it could easily be an asset of fifty to a hundred thousand dollars over the next two or three years.”
Over the weekend, major cryptocurrencies broke key resistance levels and extended their rallies. Bitcoin, the largest cryptocurrency in the world, broke above the $21,000 mark, while Ethereum hit around $1,600. Both currencies have gained around 20% over the past week.
Although a combination of factors may have impacted the recent cryptocurrency rally, the cryptocurrency market managed to gain momentum after many new data released Thursday by the United States Department of Labor indicated a cooling of inflation.
As expected, the annual inflation rate fell to 6.5% in December, from 7.1% in November. On a month-to-month basis, inflation cooled by 0.1%, compared to the 0.1% increase in the previous month. Core CPI, which excludes volatile food and energy prices, fell to 5.7% from 6% in November.
Lower inflation is generally seen as bullish for risky assets like cryptoas it puts pressure on the US Federal Reserve to slow rate hikes.