Bitcoin on the way to $500,000? Anthony Scaramucci explains how

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Bitcoin at $500,000 is an increasingly popular trend among large investors. Stakeholders in the crypto space like Cathie Wood have said they believe the digital asset could fetch half a million dollars. Naturally, they don’t expect that to happen in a year or two, but believe it’s an inevitable end for the pioneering cryptocurrency.

Anthony Scaramucci, the famous CEO of SkyBridge Capital, has revealed that he too shares this forecast for the cryptocurrency. Scaramucci gives the reasons and timing in a recent interview with Kitco News.

Bitcoin is heading towards $500,000

Scaramucci shared with Kitco News that he sees the price of bitcoin hitting the $500,000 mark. Basically, the reason for this is the adoption trend of the digital asset. This trend has been compared to that of the Internet in the 1990s, which experienced accelerated growth over the next decade. BTC has followed a more accelerated timeline, so the next five years would see exponential growth if it stuck to its current trend.

This accelerated adoption has led the value of the digital asset to grow very rapidly in a short period of time. Its growth on the four to five year chart shows unprecedented levels of growth for bitcoin.

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“Bitcoin has seen declines of at least 50% 10 times since 2012,” Scaramucci said. In the past year we’ve had two 50% declines, obviously the most recent but also one in May 2021, so if you’re long Bitcoin you have to go through this kind of volatility move.

Scaramucci, however, did not provide a timeline for when he thinks bitcoin’s price will finally hit the $500,000 mark.

The downtrend will not last

Scaramucci also touched on the recent downtrend that bitcoin and the market as a whole have been experiencing. Losing a lot of value in a short period of time is nothing new in the market due to its highly volatile nature and the CEO explained that there is no need to worry. The CEO told Kitco News that the current downtrend will not last and bitcoin will recover.

BTC is trading north of $37,000 | Source: BTCUSD on TradingView.com

He also stressed the need to look to the long term. Adding that those who hold for the long term will end up with the most rewards, comparing bitcoin to years when Amazon’s stock was in a downtrend.

Related Reading | 30,000 bitcoin holders lose their millionaire status following stock market crash

“I would just point out that Web 1.0 folks, if the same sort of thing happened to Amazon and if you were wise enough and disciplined enough to hold Amazon and let that company take full advantage of the network effects associated with it, you did very well, and I think that’s going to happen with Bitcoin,” the CEO said.

As to what triggered the selloff that triggered the downtrend, the CEO said it was hard to say. However, the digital asset is “now very closely correlated with higher growth, higher risk Nasdaq stocks.”

Featured image of TIME, chart from TradingView.com

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