Bitcoin at $500,000 is a trend that is growing more popular among large investors. Stakeholders in the crypto space like Cathie Wood have expressed that they believed the digital asset could make the half a million-dollar point. Naturally, they do not expect this to happen in one or two years but do believe that it is an inevitable end for the pioneer cryptocurrency.
Anthony Scaramucci, the famed CEO of SkyBridge Capital, has revealed that he, too, shares this forecast for the cryptocurrency. Scaramucci gives his reasons and timeline for this in a recent interview with Kitco News.
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Bitcoin Headed To $500K
Scaramucci shared with Kitco News that he sees the price of bitcoin hitting the $500,000 mark. Basically, the reason for this falls on the adoption trend of the digital asset. This trend has been compared to that of the internet in the ‘90s, which saw accelerated growth triggered in the next decade. BTC has been on a more accelerated timeline, so the next five years would spell exponential growth if it sticks to its current trend.
This accelerated adoption has led the digital asset’s value to grow very fast in a short time. Its growth on the four to five-year chart shows unprecedented levels of growth for bitcoin.
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“Bitcoin has had at least 50% decline 10 times since 2012,” said Scaramucci.” In the last year, we’ve had two 50% declines, obviously the most recent one but also one in May of 2021, so if you’re long Bitcoin, you have to subject yourself to this type of volatility move.”
Scaramucci, however, did not provide a timeline for when he believes that bitcoin’s price will ultimately hit the $500,000 mark.
The Downtrend Won’t Last
Scaramucci also touched on the recent downtrend that bitcoin and the market at large had been experiencing. Losing a lot of value in a short amount of time is not new to the market due to its highly volatile nature and the CEO explained that this is nothing to be worried about. The CEO told Kitco News that the current downtrend will not last and bitcoin will recover.
BTC trading north of $37,000 | Source: BTCUSD on TradingView.com
He also emphasized the need for looking towards the long term. Adding that those who hold for the long-term will end up with the most reward, comparing bitcoin to the years that Amazon stock was in a downtrend.
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“I’ll just point out that people in Web 1.0, if the same sort of situation happened for 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 for what triggered the sell-off that started the downtrend, the CEO said it is hard to tell. However, the digital asset is “now very tightly correlated with the higher growth, higher risk Nasdaq stocks.”
Featured image from TIME, chart from TradingView.com