SkyBridge Capital chief executive Anthony Scaramucci says Bitcoin (BTC) will have a clear bottom once the Federal Reserve ceases raising interest rates to lower inflation.
In a new YouTube interview with crypto influencer Scott Melker, Scaramucci says the Fed is on the verge of changing its hawkish policy, which would cause risk assets like Bitcoin to soar.
He predicts the Fed will soon cease raising rates any further because it will exacerbate the government’s own debt obligations. He also says the Fed can pause raising rates since inflation is coming down.
He adds that if he is wrong, the economy will be thrown into a recession and people will invest in Bitcoin as the US dollar starts to decrease in value.
In either scenario, he says, now is the opportune time to accumulate the king crypto.
“It is impossible for the Fed if you have $31 trillion of debt on its way to $34 trillion and you got interest rates rising, the federal government is not going to be able to make sense of their budget with a $1 trillion to $1.5 trillion interest rate payment to all the debt holders. So that’s number one.
Two, I believe that the Fed is going to declare victory. Inflation is going to go down because of technology. And they are going to start cutting rates or guiding people to lower rates, which is going to boom the market and boom Bitcoin.
And the third point, and I think this is the most important point if I’m wrong about those two scenarios, it’s still a great time to buy Bitcoin. Because if we go into a recession and the dollar starts weakening or people lose confidence in the dollar, they’re heading toward Bitcoin.”
Scaramucci also reacts to comments of longtime crypto skeptic JPMorgan chief executive Jamie Dimon. Dimon called Bitcoin a “hyped-up fraud” while comparing crypto to pet rocks during a CNBC interview while attending the recent World Economic Forum in Davos, Switzerland.
Scaramucci says the criticism is a bullish indicator, as traditional financial institutions are threatened by the crypto technology.
“To me, that was the most bullish sign. I haven’t seen [cryptocurrency analyst] Willy Woo’s 18 different macro green light indicators. But when I heard that, and I listened to the general consensus of the elites at Davos peeing on cryptocurrency, the blockchain and Bitcoin, I’m telling you guys that is a massive bull sign.”
At time of writing, Bitcoin is changing hands for $23,133.
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