Scaramucci Warns Bitcoin Could Drop 40% Before $500K

Anthony Scaramucci, the founder of SkyBridge Capital, has projected a turbulent path for Bitcoin before it eventually climbs to half a million dollars. Speaking with Coinage, the veteran investor warned that the cryptocurrency could face a sharp decline of up to 40%, even as he maintains confidence in its long-term potential.

Market Fluctuations and Long-Term Vision

Scaramucci argues that volatility is not a mistake but rather an inherent part of the Bitcoin ride. He emphasized that investors must be psychologically ready to work through a downturn without losing sight of the larger horizon.

In addition, he highlighted that the use of Bitcoin is still at an early stage and the biggest mistake that investors make is to underestimate its future in the world of finance. Therefore, corrections can make short-term traders nervous, but Scaramucci sees them as a natural progression of any growth cycle.

Notably, he likened the present state in crypto to his personal initial failures in conventional markets. He admitted to the early sales of Apple, Amazon, Microsoft, and Nvidia and missing out on historic gains. Therefore, his advice to investors was simple, keep quality assets and avoid the temptation to sell them when things are turbulent.

Lessons From Past Investment Errors

Scaramucci’s reflections extend beyond cryptocurrency. He recounted how dismissing companies in their infancy cost him sizable returns, underscoring the importance of patience. 

Moreover, he argued that the same principle applies to Bitcoin today. In his view, holding digital assets over the next five to six years could deliver rewards similar to those earned by early backers of tech giants.

Additionally, he reminded investors that markets often misalign perception and reality. Good times, he warned, are never permanent, and disaster may strike when things are best. But to those who are disciplined, corrections are chances to fortify the stand not to shrink back.

Preparing for What Lies Ahead

As the wider crypto market is in a bullish mood, Scaramucci cautioned. He forecasted that indeed, Bitcoin might plummet before hitting his high target of $500,000. But his general counsel was grounded in belief, investors who believe in Bitcoin should not give up and see volatility as a process.