Bitcoin will reach $170,000 after the reduction: Anthony Scaramucci

Anthony Scaramucci – founder of Skybridge Capital – predicts that the next bitcoin (BTC) halving will drop the asset's value to $170,000 per coin.

His latest estimate is based on Bitcoin's track record following a “halving” — a roughly one-in-four-year event that halves the amount of new BTC produced.

Scaramucci's “conservative” estimate

Scaramucci has long considered Bitcoin a better store of value than gold and compared its potential for outsized returns to Amazon ( AMZN ) stock.

“Go back and look at Bitcoin's half-cycles,” Scaramucci said on Scott Melker's podcast last week. “Multiply by four the day Bitcoin halves. [and] 18 months later and that was the price of bitcoin.

According to Yahoo Finance, Bitcoin's last halving was on May 11, 2020, on which date the asset closed at $9,670. Just 18 months later, the property hit its current all-time high of $69,000.

Prior to that halving, BTC closed at $656 on July 16, 2016, before rising to $19,783 in December 2017.

At this point, the financier says the $170,000 price target is “conservative,” and that Bitcoin's price is $35,000, which will halve in April 2024. As of Monday, Bitcoin is trading at $43,000.

Let's say we're at $50,000 in April, then that's the $200,000 handle. Let's say we're at $60,000, we're at $240,000,” he said.

Digital gold

Longer term, Scaramucci expects Bitcoin to “easily” reach half the market capitalization of gold, which currently stands at $13.6 trillion. That implies a Bitcoin value of at least $323,000 per coin.

Scaramucci previously revealed that he was the first foreign investor to buy shares of BlackRock's Bitcoin spot ETF before his fund was approved on January 11.

Like Scaramucci, BlackRock CEO Larry Fink has repeatedly referred to Bitcoin as “digital gold” and a “flight to quality” in uncertain times.

Scaramucci personally met Larry Fink in 2021, and the latter thought Bitcoin was “stupid” at the time. Scaramucci credits Fink for being willing to change his mind on the property.

“It takes a very smart leader to proudly say Bitcoin is waiting and then 24 months later say, ‘You know what I got wrong, BlackRock should be a part of this.'”