Why Anthony Scarmucci Is Bullish on Bitcoin Despite Bear Market

Though Bitcoin (BTC) continues to trade well below its 2021 November 2021 highs, Anthony Scaramucci, the founder of SkyBridge Capital and former White House communications chief, remains steadfastly bullish on the asset.

Speaking at the Messari Mainnet conference in New York, Scaramucci expressed confidence that the worst of the bear market is now behind us.

Why Bitcoin Goes Up From Here: Scaramucci

During a fireside chat titled “Why I’m still bullish,” Scaramucci encouraged bitcoin holders not to sell.

“You [young people] will be mainstreaming Bitcoin the way my generation mainstreamed the internet,” he said, pointing to the crowd. “The next 10 to 20 years are remarkably bullish [for bitcoin].”

His remarks remained consistent with his statements to Bloomberg in March, comparing Bitcoin’s current adoption to that of the internet in 1998. As of 2023, the crypto payment gateway Triple-A estimates that there are currently 420 million crypto holders worldwide – about 4.2% of the world population.

Macroeconomic challenges persist, however – including rising interest rates, a seemingly antagonistic Securities and Exchange Commission (SEC) chief, and negative sentiments surrounding crypto adoption.

Nevertheless, the American financier maintained “is better than gold,” a precious metal that has appreciated strongly against the U.S. dollar since President Nixon ended the gold standard five decades ago. Bitcoin is often compared to gold as both an inflation hedge and a store of value due to the limited supply of each asset.

“As wealth is created in society, a portion of that wealth is going to get chipped off for digital assets, most likely bitcoin,” Scaramucci said.

The Importance of Bitcoin ETFs

Scaramucci also emphasized the transformative potential of Bitcoin ETFs in driving widespread Bitcoin adoption.

“Every single Wall Street firm is going to have a bitcoin ETF in their arsenal,” he predicted. When Wall Street has something in their arsenal, they sell it to their clients…The market [for bitcoin] is going to widen.”

While a plethora of Bitcoin ETFs have launched globally, a Bitcoin spot ETF – backed directly by actual BTC – is yet to reach the U.S. market. Roughly ten asset managers are currently racing to launch one, though their fate in the eyes of the SEC remains uncertain.

After Grayscale bested the SEC in court last month, Bloomberg’s ETF analysts find it likely that a spot ETF will hit the market this year. Former SEC chair Jay Clayton said he views spot ETF approval as “inevitable.”