Anthony Scaramucci, managing partner of SkyBridge, described the recent decline in Bitcoin’s price as a “normal” correction within a four-year cycle. He believes that the current downturn is linked to profit-taking by long-term holders and anticipates a bullish phase to commence in the fourth quarter of this year.
In a podcast, Scaramucci stated,
“We are in a four-year cycle. There are major players, veterans who believe in it. When people believe in something, they create a self-fulfilling prophecy.”
He noted that spot Bitcoin ETFs have helped smooth out cyclical fluctuations due to increased institutional investments, although historical patterns remain relevant.
Despite his optimistic outlook for Bitcoin to reach $150,000 by 2025, Scaramucci acknowledged that the sharp drop in October disrupted widespread consensus. Bitcoin plummeted from a historic high above $126,000 to around $60,000 amid record liquidations. He emphasized that markets often move against prevailing sentiments, as seen after the FTX exchange collapse in early 2023.
Currently, Bitcoin is trading near $68,400, having dropped 1.1% in the last 24 hours and nearly 8% over the week. Ethereum has also seen a decline, falling to approximately $2,000. Meanwhile, the market sentiment is marked by “extreme fear,” with liquidation volumes exceeding $383 million.
ETF products based on Bitcoin have recorded four consecutive weeks of positive inflows, attracting $95.1 million from March 16 to March 20, despite a mixed performance on trading days. In contrast, Ethereum ETFs experienced an outflow of nearly $60 million.
