As per Bloomberg, Anthony Scaramucci, the renowned hedge fund manager and founder of SkyBridge Capital, has made a bold prediction for Bitcoin (BTC), suggesting that the cryptocurrency could hit new all-time highs.
Scaramucci attributes this potential surge to the expected Federal Reserve rate cuts and a more defined regulatory framework in the U.S., serving as significant catalysts for Bitcoin's price growth.
He anticipates that the Fed might announce a half-point reduction in borrowing costs on Wednesday, with a total of at least 150 basis points cut over the next 18 months. Scaramucci is optimistic about this move's impact on asset prices both domestically and globally, projecting a $100,000 price target for Bitcoin by year-end.
Following a recent peak of $73,798 in mid-March driven by ETF demand, Bitcoin's momentum slowed due to declining inflows into ETFs.
Federal Reserve Rate Decision Awaited
Cryptocurrency markets experienced mixed price movements on Wednesday morning ahead of the Federal Reserve's interest rate announcement scheduled for later in the day. While a rate cut is highly anticipated, there is uncertainty surrounding its magnitude.
Investors are keen on understanding the Fed's interest rate policy trajectory for the remainder of the year and the likelihood of further cuts in the pipeline. Fed Chairman Jerome Powell's post-meeting press conference is expected to provide insights into the central bank's stance.
Bitcoin's Reaction Pre-Fed Rate Decision
Bitcoin demonstrated a notable uptrend in Tuesday's trading session as optimism grew surrounding the impending rate cut by the Fed. The leading cryptocurrency surged to a high of $61,373, marking its highest level in three weeks before retracing some gains to just below $60,000, up 1.18% over the past 24 hours.
Analysts suggest a potential minor pullback after the TD Sequential indicator signaled a sell on the BTC one-hour chart. On the upside, key on-chain resistance levels are evenly distributed, with $64,000 being a crucial level where 1.57 million addresses are currently holding at a loss, according to IntoTheblock.
Overall, Anthony Scaramucci's prediction of Bitcoin hitting $100,000 amid Federal Reserve rate cuts and regulatory clarity showcases the cryptocurrency's potential for significant growth. Investors should monitor the Fed's decisions closely as they can have a substantial impact on Bitcoin's price movements and the broader financial markets.