Bitcoin’s Price Surge: A Delayed Reaction?
SkyBridge Capital’s founder, Anthony Scaramucci, recently commented that Bitcoin’s current valuation, hovering near $97,000, is where it arguably should have been two years prior. During a conversation on CNBC’s Squawk Box on February 10th, he posited that the cryptocurrency’s recent surge is largely attributable to the drawn-out process of approving a spot Bitcoin exchange-traded fund (ETF), which he contends should have been greenlit in early 2022.
“The price suffered considerably due to the delay.”
Scaramucci maintained that regulatory ambiguity significantly hampered Bitcoin’s performance throughout much of 2022 and 2023. It wasn’t until the spot ETFs were finally approved in January that Bitcoin regained its upward momentum, eventually surpassing the $60,000 threshold again in March 2024.
Growing Institutional Adoption
Scaramucci also underscored a significant change in market dynamics: the increasing involvement of institutional investors and even national-level entities in Bitcoin. He highlighted that several university endowments, including Emory University, have recently started exploring Bitcoin investments. For instance, Emory disclosed an investment in Grayscale’s Bitcoin ETF last year.
Furthermore, discussions are underway regarding the potential establishment of a strategic Bitcoin reserve in the United States. Scaramucci noted that the nation’s existing strategic reserve already comprises nearly 30 different asset classes, suggesting that holding Bitcoin could eventually be deemed advantageous. He also pointed out that sovereign wealth funds in the Middle East have been quietly accumulating Bitcoin, a trend that could bode well for the cryptocurrency’s long-term prospects.
Evolving Regulatory Landscape and Market Forces
Addressing the broader regulatory framework, Scaramucci emphasized that a shift toward more consistent and balanced regulatory oversight could provide the stability necessary for Bitcoin to sustain its current positive trend. He believes that greater policy clarity and proactive industry engagement are crucial for supporting the digital asset amidst its continued price fluctuations.
Despite periods of volatility, Bitcoin remains a key topic of discussion for investors. Its recent decline from a peak near $100,000, following a sustained rally, reflects ongoing debates about whether the cryptocurrency can maintain its upward trajectory, particularly as upcoming U.S. economic data may influence overall risk appetite.
Maxwell Reed is the first editor of Cryptovista360. He loves technology and finance, which led him to crypto. With a background in computer science and journalism, he simplifies digital currency complexities with storytelling and humor. Maxwell began following crypto early, staying updated with blockchain trends. He enjoys coffee, exploring tech, and discussing finance’s future. His motto: “Stay curious and keep learning.” Enjoy the journey with us!