At present, the whole financial market is talking about the cascading trends in Bitcoin and the greater cryptocurrency market. The recent price decline of the top coin has started a new wave of speculation and debate among investors. Under such circumstances, one billionaire investor and former US government advisor have come forward to speak in defense of the crypto markets.
Anthony Scaramucci has served his tenure as the chief of communications at the White House. He is also the founder and the managing partner at SkyBridge Capital. Commenting on the current state of the cryptocurrency markets, he advised the investors to pace themselves and remain positive despite the increasing pressure of the bear market.
US Economy to Face Recession
At present, the general sentiment in the financial market is depressive. Investors are already devastated by the discouraging performance of the stock market. At the same time, the returns from the crypto market are not presenting a very optimistic outlook either. At the outset of the financial concerns, many economists predicted the arrival of a brutal recession period in the short term.
The recently hosted meeting by the Federal Reserve and the blasting inflation projections issued by the Department of Labor recently has further added to the fear and greed index decline. As per the latest CPI projections, the rate of inflation in the country is the worst in 40 years for May alone. Therefore, the market analysts are opting for a 50 points basis rather than 75 point basis forecast hike rate.
Macroeconomic Factors and Bitcoin Investors
Under the trying times, there are experienced investors like Scaramucci, who remain bullish on Bitcoin. Speaking to a journalist at CNBC, Scaramucci claimed that if the investors play their cards right, they can become eligible for big rewards with Bitcoin and Ethereum. He also acknowledged that, at present, the financial markets across the board are facing challenges, but the spotlight of the carnage is focused mainly on the crypto sector.
He explained that the main reason for the start of the volatility in Bitcoin is the monetary policies of the Federal Reserve to hike interest rates which also resulted in events like the collapse of the Terra classic ecosystem.
Scaramucci compared the current situation of the market with the web1 stock meltdown in 2001. In addition to advising investors to remain calm and collected, Scaramucci also hinted that it is the best time to buy from the dip. He also made an optimistic prediction that Bitcoin prices will reach around $100k.