Bitcoin remains volatile despite $103k milestone: Scaramucci

SkyBridge Capital founder Anthony Scaramucci shared a measured view on Bitcoin’s volatility amid recent price surges.

Talk to Yahoo FinanceScaramucci emphasized the importance of long-term investment horizons and institutional adoption of Bitcoin (BTC). He detailed both 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,” Scaramucci said.

Scaramucci highlights recent Bitcoin pullback

During the conversation, Scaramucci highlighted the pullback from Bitcoin’s recent high of around $103,900. Drawing on his historical experience, he reminded viewers of Bitcoin’s largest drop of 82%. He also recalled the difficult period in December 2022, when prices bottomed around $16,000 to $17,000.

He also pointed out that any rolling four-year period has historically generated positive returns despite volatility.

Scaramucci views recent price milestones as indicators of Bitcoin’s maturation into mainstream institutional investment. He said the development should have happened sooner but was delayed by regulatory hurdles imposed by U.S. Securities and Exchange Commission Chairman Gary Gensler.

The recent approval of cash ETFs and growing adoption on Wall Street now provides what Scaramucci sees as fundamental support for Bitcoin prices. He draws a parallel between Bitcoin and gold, suggesting the potential for a tenfold increase if Bitcoin reaches the market cap of gold.

While discussing his new book, “The Little Book of Bitcoin,” Scaramucci revealed an interesting disagreement with MicroStrategy’s Michael Saylor regarding proper portfolio allocation. Scaramucci’s recommendation of a 2% allocation was criticized by Saylor as too conservative.

Looking ahead, Scaramucci maintains that while significant price corrections remain possible, the institutional framework that now supports Bitcoin creates a more stable investment environment than in previous cycles.