SkyBridge Capital’s Co-CIO highlighted the reasons why the Wall Street giant will continue with bitcoin after comparing gold and bitcoin.
Both Bitcoin and gold have suffered significant price swings this year, amidst controversy about whether the cryptocurrency was diverting demand away from gold. In April, the digital currency hit a high of around $65,000 before falling. It was worth roughly $36,200 at the time.
Gold on the other hand, came dangerously close to entering a bear market in March before reversing direction to erase year-to-date losses. Anthony Scaramucci’s hedge fund, SkyBridge Capital, which has over $7 billion in AUM has increased its support for Bitcoin.
Anthony Scaramucci appreciated Bitcoin
The Wall Street institution has been praising the asset since the end of 2020, when BTC’s price was getting major traction. Anthony Scaramucci, the company’s owner, has praised cryptocurrencies at every opportunity. These include predicting a price of $100,000 by the end of the year, stating that it is a safe investment same as to bonds, and claiming that it is better than gold, just like Gayeski.
According to SkyBridge Capital’s founder, the cryptocurrency market cap would hit $5 trillion if it hits “just the half” of the yellow metal market cap. With roughly 18,6 million bitcoins in circulation, this would translate to a $270,000 per coin price.
Troy Gayeski Highlighted the Primary Cryptocurrency
Troy Gayeski, the organization’s Co-Chief Investment Officer, stated that they believe in gold’s future but are more interested in investing in what many regards to be its digital alternate. He also outlined the company’s belief in the primary cryptocurrency while criticizing the Federal Reserve’s actions since the COVID-19 pandemic broke out.
Investors are looking to hedge their positions as the global debt balloon grows out of control and the Fed moves to “taper asset purchases.” SkyBridge, on the other hand is optimistic about gold’s prospects in terms of price against the dollar.
“Going forward, the possibility of gold maintaining its rise is pretty likely, setting new highs during the next year,” Gayeski projected. SkyBridge intends to continue with the largest digital asset, despite fact that gold has fared well in similar scenarios in the past.
He said we will stick to Bitcoin and cryptocurrency because we believe there’s more upside. You are going to get a little bit more juice than you will in gold from the same phenomenon, acknowledging the younger market’s volatility.
In early 2021, the organisation also launched a Bitcoin Fund with a $25 million initial investment. Scaramucci has boasted about how well the fund is performing, claiming that institutional demand is pouring in from all sides.