While the bitcoin price might be experiencing some selling pressure today, crypto bulls are not worried. Among them, Anthony Scaramucci, who founded Skybridge Capital, has a long-term view of the bitcoin price based on solid fundamentals. If he’s right, the bitcoin price could shatter even some of the most bullish of predictions.
Scaramucci told CNBC bitcoin could “easily trade at $500,000 a coin,” pointing to the number of high-net-worth individuals vs. the finite supply of the cryptocurrency to go around. He cited JPMorgan data, saying there are fewer than 50 million millionaires based on USD fiat currency. Meanwhile, the supply of bitcoin is capped at 21 million coins. Scaramucci said,
“You don’t even have enough bitcoins for every millionaire in our society to own one coin.”
Scaramucci pointed to fundamental data provided by fellow bitcoin bull and ARK Invest CEO Cathie Wood. The ARK Invest chief has predicted that the number of bitcoin digital wallets will reach 1 billion in the year-end 2024 to mid-2025 period, at which time he expects that the leading cryptocurrency will reach the half-a-million-dollar level.
He also calls bitcoin a “potential inflation hedge.” Investors might have expected the latest sky-high inflation data to buoy the bitcoin price higher in the short term. Scaramucci has a longer term view and is advising investors to gain exposure to the digital gold, as it’s known. He maintains that it is still early innings for the bitcoin price.
— Squawk Box (@SquawkCNBC) November 12, 2021
With the bitcoin price trading above $60,000, miners are making bank. Mining analyst 3 Capital says miners are being paid $21 billion per year to secure the Bitcoin network. Well known investor Anthony Pompliano points out that “Bitcoin miners were paid $58.6 million in the last 24 hours to secure the bitcoin network.”
It is not surprising to learn that Bitcoin miners have also been taking some profits and selling some of their BTC inventory at these price levels. ByteTree founder Charlie Morris noted that after holding onto their coins, “miners are net sellers again,” as they move their inventory “from miner ‘hodl’ and into the network.”
The #bitcoin miners are net sellers again, which kicked off yesterday. 7 day rolling (or 1008 blocks) generation in blue and first spend in green. That means the BTC is moving from miner HODL and into the network. pic.twitter.com/7EPIqxb0c4
— Charlie Morris (@AtlasPulse) November 12, 2021
Morris noted that if miners “keep dumping” it might not help the case for the bitcoin bull market. Nonetheless, there are other variables at play.
This article was originally posted on FX Empire