Anthony Scaramucci, founder of SkyBridge Capital, believes the recent Bitcoin sell-off lacks a rational basis and stems from some investors viewing Bitcoin as a “risk-on” asset.
In a recent X post, he argued that the dip was driven by reactions to market volatility in tech stocks rather than any specific issue with Bitcoin itself.
This is why it matters that @BlackRock is better than anyone at articulating to its clients why #bitcoin is a diversifier and a hedge, and not “risk on”.
Yesterday bitcoin sells off for no good reason (“because tech is down!”) and all other bitcoin ETFs see big outflows….but…
— Anthony Scaramucci (@Scaramucci) November 1, 2024
Scaramucci highlighted BlackRock’s influence in helping investors understand Bitcoin as a long-term, diversifying hedge instead of a high-risk asset.
He also pointed out that while other Bitcoin ETFs saw outflows during this period, BlackRock’s iShares Bitcoin Trust (IBIT) recorded $315 million in inflows on the same day.
BlackRock buying dip
The sell-off follows broader market dynamics, including a net outflow of $54.9 million in Bitcoin spot ETFs on Nov. 1, after a week of net inflows.
However, BlackRock’s IBIT has continued to see strong demand, reaching a record $875 million inflow on Oct. 30, with spot Bitcoin ETFs collectively drawing in $917.2 million in a single day — the largest since March.
Here we go again.. if we agree that price is the net result of buyers and sellers and the ETFs have been (massive, arguably Herculean) buyers, then I’d say it’s you who should talk to your friends Holmes. https://t.co/jnt2KpdIPM
— Eric Balchunas (@EricBalchunas) October 31, 2024
Despite this sustained investor interest, Bitcoin’s price fell below $70,000 on Friday.
Bitcoin rally coming?
As reported by U.Today, Scaramucci accurately predicted that the Bitcoin price would skyrocket following the Federal Reserve’s rate cut.
The founder of SkyBridge Capital recently stated that Bitcoin is still “very early.”
“If you’re watching #Bitcoin make new highs and thinking you missed the boat – you didn’t,” he wrote.
Scaramucci has encouraged potential Bitcoin investors to actually read the Bitcoin white paper and listen to prominent Bitcoin evangelists of the likes of MicroStrategy co-founder Michael Saylor and ShapeShift founder Erik Voorhees.