Anthony Scaramucci, founder and CEO of hedge fund SkyBridge Capital, hinted that the fate of Bitcoin and the cryptocurrency market will be decided next week.
Anthony Scaramucci awaits this development for the Bitcoin rally
The US investor said in a new interview today that he expects the Fed to halt its campaign to raise interest rates before inflation hits its 2% target, sparking a rally in risky markets like cryptocurrencies. “I believe the Fed will declare victory at 4% to 5% inflation. If I’m right, there will be a boom in the market. “There will be a lot of open interest in crypto and we will see a rebirth of risk assets.”
The famous CEO previously described 2023 as the “recovery year” for Bitcoin and predicted that the largest cryptocurrency by market capitalization could trade between $50,000 and $100,000 in two to three years. The Fed’s interest rate decision, pointed out by the new statements, will be revealed at the meeting that will take place between January 31 and February 1. The cryptocurrency market had the opportunity to recover around 30% in the first weeks of the new year until this date.
What do on-chain metrics say about BTC?
Bitcoin’s strong gains from Jan 20 to 22 sustained over 2% on Jan 23. This caused the leading cryptocurrency to trade at levels last seen in August 2022. Analytics firm Glassnode drew attention to the changes in the behavior of long-term investors and miners during this period when Bitcoin spent over $23,000.
According to the report, an assessment of BTC’s Percentage of Supply in Profit metric revealed that the year-over-year increase in price represents one of the sharpest increases in profitability compared to previous bear markets. According to Glassnode, in the current bear market that began in November 2021, BTC’s Net Realized Profit and Loss metric had two major capitulation events (Terra-Luna and the FTX crash) resulting in net losses of 2.9% and 3.7%. exposed.
Along with the above, Glassnode states that with a spike in BTC profitability over the past few weeks, it has entered a state of profit dominance, which the market describes as follows. As for long-term Bitcoin investors, the recent bounce in price is helping to reverse the trend, after many of them sold BTC when FTX crashed.
At the juncture of on-chain analysis and Scaramucci’s predictions, the cryptocurrency market rallied at the start of 2023 with expectations that central banks will not reduce or even increase interest rates in the coming months. The optimistic outlook could be reversed as the Federal Reserve signals at next week’s policy meeting that it will take hawkish steps in the continued fight against inflation. Different analyzes that we quoted as Kriptokoin.com say that the current monetary policy of the Fed points to such a fate.
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