SkyBridge Capital founder Anthony Scaramucci has shared a measured perspective on Bitcoin volatility amid recent price increases.
Speaking to Yahoo FinanceScaramucci stressed the importance of long-term investment horizons and institutional adoption of Bitcoin (BTC). He detailed the risks and opportunities in the current crypto market environment.
“Bitcoin is the type of asset, I always tell people, if you want to buy Bitcoin, you have to hold it for a period of four years,” said Scaramucci.
Scaramucci points to the recent Bitcoin pullback
During the conversation, Scaramucci pointed to the pullback from Bitcoin’s recent peak of around $103,900. Drawing from historical experience, he reminded viewers of Bitcoin’s most severe drawdown of 82%. He also recalled the challenging period in December 2022 when prices are raised around $16,000-$17,000.
He also noted that every four-year period has historically yielded positive returns despite volatility.
Scaramucci sees the recent price milestones as indicators of Bitcoin’s maturation towards mainstream institutional investment. He expressed that this development should have been done earlier, but was delayed by regulatory obstacles under the chairman of the Securities and Exchange Commission, Gary Gensler.
The recent approval of cash ETFs and growing adoption on Wall Street now provides what Scaramucci sees as a fundamental plane of support for Bitcoin prices. He draws a parallel between Bitcoin and gold, suggesting the potential for a tenfold increase if Bitcoin achieves the market capitalization of gold.
While discussing his new book, “The Little Book of Bitcoin,” Scaramucci revealed an interesting disagreement with MicroStrategy’s Michael Saylor regarding appropriate portfolio allocation. Scaramucci’s recommendation of a 2% allocation was criticized by Saylor as too conservative.
In the future, Scaramucci argues that, while significant price corrections remain possible, the institutional framework that now supports Bitcoin creates a more stable investment environment than in previous cycles.