It is likely that Bitcoin will trade at $50,000 to $100,000 within two to three years according to Sky Bridge founder Antony Scaramucci who named 2023 a “recovery year”. While you accept the risk you also believe in Bitcoin adoption. In the next two to three years, if we get the adoption right, which I believe we will this asset could easily be worth between $50k and $100k,” Scaramucci said.
Last week, Jean-Baptiste Graftieaux, CEO of Bitstamp, shared a similar view, saying that the next Bull Run could occur within the next two years. He cited increasing interest from institutional investors. Crypto investors are trying to predict the timing of the next Bitcoin Bull Run after the turbulent year in 2022.
The whole cryptocurrency market in 2022 lost around $1.4 trillion in value because of bankruptcies, liquidity problems, and the collapse of the Futures Exchange (FTX) exchange. Despite a modest increase at the beginning of the year, similar-risk assets like equities, experts believe Bitcoin has bottomed but is unlikely to retest its all-time high of around $69,000. Investors watch the macroeconomic outlook.
The Federal Reserve’s interest rate hikes, as well as other macroeconomic developments, have impacted stocks and cryptocurrencies due to Bitcoin’s strong link to risk assets, particularly stocks.
Last year, the Fed started hiking interest rates aggressively to control inflation, which plunged the price of risk assets like Bitcoin. Industry experts claimed that Bitcoin could benefit from a change in the macroeconomic outlook.
At the time of publication, BTC was trading at $20,813 USD, slightly up over the previous 24 hours. Since the beginning of 2023, BTC has recorded 13 green days out of 16.
Following the announcement that inflation in the United States of America has slowed, Bitcoin reached higher highs than expected in the short term.
Following the news, investors became more bullish on the market. Scaramuccia’s Sky Bridge Capital predicts that Bitcoin will reach $300,000 within six years.
In his opinion ‘two major things have happened on the institutional side’ that will likely generate demand for Bitcoin.
As one of the supporting arguments for his prediction, he mentioned Fidelity Investments, which allows businesses to offer employees the option of investing up to 20 percent of their retirement savings in Bitcoin.
According to Scaramucci, Fidelity is allowing its 401k products to offer Bitcoin. Blackrock will also contribute to Bitcoin’s recovery.
Partnered with Coinbase to offer clients private trusts through which they can invest in Bitcoin.
It is evident that Blackrock is an investment management firm overseeing $8.5 trillion of assets. Scaramucci highlighted the advantages of this alliance in the crypto market by saying “Larry Fink’s acceptance of institutional demand for digital assets shows he’s creating these options and uniting with Coinbase. What has to be kept in mind is there are only 21 million Bitcoin around creating a demand surge but little availability.”
Lightning Network, a long-awaited upgrade to the Bitcoin network, was also mentioned by Scaramucci. As a result of this upgrade, there will be a two-layer payment protocol on top of Bitcoin which will increase the number of blockchain applications and improve the network’s scalability.
Considering the recent increase in Ethereum value, Scaramucci stated that Ethereum is about to merge and reduce gas and transaction fees.
He also believes that the global economy will return to its strong 2019 ‘Fourth Quarter’ status within the next 6 to 12 months, which is one of the reasons Ethereum has increased by about 70 percent over the past five and a half weeks. According to him, investors should relax; we see a pretty optimistic future for BTC, ETH, ALGO, and Solana (SOL) in the next 12 to 24 months.
According to Tai, the start of a bull run is probably a year away and the aftereffects of the Futures Exchange (FTX) collapse may continue to be felt for another six to nine months.
In an interview with Consumer News and Business Channel (CNBC) last week, Jean-Baptiste Graftieaux CEO of cryptocurrency exchange Bitstamp predicted that the next Bull Run will come in two years.
In spite of this, Demirors warned that the events over 2022 have caused tremendous reputational damage to the asset class and the industry, adding that it will take some time for that confidence to return.