Global investment firm SkyBridge Capital is betting on Bitcoin reaching the $35,000 price level by the end of 2023 on the back of a sustained turnaround in the crypto market.
While admitting this view was “overly bullish,” SkyBridge Capital founder Anthony Scaramucci said the recent crypto rally could further gather momentum with the upcoming Bitcoin “halving,” which happens every 4 years and cuts the number of new bitcoins released by half.
“If bitcoin could trade back to $35,000, SkyBridge is going to have an amazing year,” Scaramucci reportedly told the Reuters Global Markets Forum in Davos, Switzerland.
Historically, Bitcoin halving has been followed by periods of higher prices as the event effectively slows down the supply of BTC onto the market. While it is not possible to exactly know when the next halving will occur, experts point to May 2024 as an anticipated date.
SkyBridge is among the few investment firms that have invested in cryptocurrencies, namely Bitcoin, Ethereum, Solana, and others. The company also plans to invest in the structured credit market to drive 2023 returns after its losses in 2022.
“Structured credit, mortgage-backed securities, credit card debt, auto loans — that’s an attractive space again,” Scaramucci said. As of last September, his firm managed $2.2 billion, including $800 million in digital asset-related investments.
In another interview with CNBC, Scaramucci called 2023 a “recovery year” for Bitcoin and predicted the flagship cryptocurrency could reach $50,000 to $100,000 in two to three years. He said:
“You are taking on risk but you’re also believing in [bitcoin] adoption. So if we get the adoption right, and I believe we will, this could easily be a fifty to one hundred thousand dollar asset over the next two to three years.”
Over the weekend, major cryptocurrencies broke above key resistance levels and extended their rallies. Bitcoin, the world’s largest cryptocurrency, has passed the $21,000 price mark while Ethereum reached around $1,600. Both coins have gained around 20% over the past week.
While a mix of factors might have impacted the recent crypto rally, the crypto market managed to gather momentum after new data released Thursday by the U.S. Department of Labor indicated a cooldown in inflation.
As expected, the annual inflation rate fell to 6.5% in December, compared to 7.1% in November. Month-over-month, inflation cooled by 0.1%, compared to the 0.1% increase last month. Core CPI, which does not take volatile food and energy prices into account, fell to 5.7% from 6% in November.
Lower inflation is usually viewed as bullish for risk assets like crypto as it puts pressure on the US Federal Reserve to slow down rate hikes.