'I’ve been embarrassed by my predictions': Anthony Scaramucci admits he's 'a little gun-shy' about setting a Bitcoin price target, still believes the cryptocurrency will cross all-time high
Bitcoin is making a strong comeback. It gained over 150% in 2023 and rose above $47,000 for the first time since April 2022 this week ahead of the U.S. Securities and Exchange Commission's decision on a Bitcoin exchange-traded fund (ETF).
But because of its volatility, setting a price target can be challenging — and even market veterans like Anthony Scaramucci find it difficult to get right.
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In a December interview with CNBC, the SkyBridge Capital founder reflected on his previous forecasts for the world’s largest cryptocurrency.
“I've been embarrassed by my predictions in the past,” he said, “I thought it would have gotten to $100,000 by the end of 2022.”
Bitcoin experienced a significant decline in 2022, plummeting from $46,311 to $16,547 — a 64% decrease. Yet, 2023 marked a turnaround, with the cryptocurrency surging 153% to approximately $42,000.
Despite this recovery, Bitcoin remains far below its November 2021 peak of $68,990.
Scaramucci remains optimistic about the virtual currency reclaiming and surpassing this high.
“If you’re asking the question ‘Will Bitcoin get through its all-time high?’, I believe it will,” he stated.
“I don’t know when, there could be some selling pressure… But if you’re asking about year-end — and I’m hoping you’ll invite me back — I think we’ll be through the all-time high. But I’ve been embarrassed by my predictions before, so I’m a little hesitant, a little gun-shy.”
A store of value asset with ‘a lot of room ahead’
Scaramucci views Bitcoin as the digital equivalent of gold.
“I'm making the case that this is a store of value asset. This is effectively digital gold,” he remarked during a recent Bloomberg interview.
The rise of Bitcoin is often attributed to people’s growing skepticism towards fiat money. Unlike fiat currencies, Bitcoin can’t be printed at will by central banks. Instead, the number of Bitcoins is capped at 21 million by mathematical algorithms.
Scaramucci says if we assume Bitcoin will one day achieve a status comparable to gold, the upside potential is significant.
“[Bitcoin] has a seven or $800 billion market cap today,” he explained. “If it were going to get that moniker of digital gold, it should trade to where gold is trading. And again, depending on days and markets, it's $10 to $12 trillion. So Bitcoin’s got a lot of room ahead.”
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How much should you invest in Bitcoin?
Considering this optimistic outlook, one question inevitably arises: how much should one invest in Bitcoin?
Despite being a staunch supporter, Scaramucci recommends only small exposure to the cryptocurrency.
“As it relates to an individual investor… I say 1-3%. If you're going to be aggressive, possibly 5%. But 1-3% is enough exposure where if we're right, it will impact your portfolio positively,” he said, adding that over time, Bitcoin could have a “decoupling effect” to stocks and bonds.
These days, it’s easy to add Bitcoin exposure to your portfolio.
Many platforms allow individual investors to buy and sell crypto. Just be aware that some exchanges charge up to 4% commission fees for each transaction. So look for apps that charge low or even zero commissions.
Bitcoin ETFs provide another option. For instance, the ProShares Bitcoin Strategy ETF (BITO) started trading on NYSE Arca in October 2021, marking the first U.S. Bitcoin-linked ETF on the market. The fund, which holds Bitcoin futures contracts, has an expense ratio of 0.95%.
Investors can also look into companies that have tied their growth to the crypto market. Bitcoin miners such as Riot Platforms (RIOT) and Marathon Digital Holdings (MARA), as well as intermediaries like Coinbase Global (COIN), could provide a starting point for further research.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
