SkyBridge Capital CEO Anticipates Crypto Rally In Between Fed Pivot

The CEO of SkyBridge Capital, Anthony Scaramucci, recently voiced confidence in an interview on Bloomberg Television regarding a possible rise in Bitcoin (BTC) and Ethereum (ETH) in light of the Federal Reserve’s hinting at a shift in policy.

According to Scaramucci, the Federal Reserve will probably stop raising interest rates, which will lessen the pressure on risky assets. Positive inflation data, in his opinion, indicates that the Fed should cut rates in the next quarter, which would be good news for stock prices and other assets.

“I do think the Fed is done hiking. I think that the inflation data was very positive, and it’s likely to go lower over the next quarter… and I think it’s very, very good for stock prices, very good for assets,” says Scaramucci.

Anticipating Rate Cuts and Housing Market Influence

In addition, he projects that the Fed may lower interest rates in the first quarter of the upcoming year, particularly in reaction to the weak state of the US housing market. According to Scaramucci, a low-interest mortgage is something that many Americans would want to see happen.

Scaramucci expressed optimism that Bitcoin, Ethereum, and other digital assets will “trend higher.” He cites the U.S. Securities and Exchange Commission’s (SEC) anticipated approval of a spot Bitcoin exchange-traded fund (ETF) as the driving force behind the recent upsurge in cryptocurrency prices.

“If [approval] happens, I think there’s an induction of a tremendous amount of demand for Bitcoin. And of course, you have a halving in Bitcoin, which basically means that the supply is going to get cut in half in April,” says Scaramucci.

Scaramucci claims that SkyBridge Capital would continue to hold a long position in the portfolio due to the favorable variables impacting the cryptocurrency market, viewing it as a focused, strategic wager with a macro perspective. He highlights the potential of Bitcoin in the face of shifting market conditions by recalling the cryptocurrency’s tenacity during the Silicon Valley Bank crisis earlier this year.