Bitcoin (BTC) could reach $100K before yearend, says hedge fund founder

Bitcoin breached $50,000 for the first time earlier this week and set a new record when the crypto traded above $52,000. However, many are still optimistic that BTC’s price could still soar further and that it has the potential to reach six-digit figures within this year.

Founder of hedge fund SkyBridge Capital Anthony Scaramucci said on Wednesday that Bitcoin still has room to grow given its limited supply coupled with the increasing demand for the crypto. He added that while his company entered a bit later than others, its Bitcoin fund’s performance has been remarkable thus far.

“We like it,” Scaramucci told CNBC during a “Squawk Box” interview. “We have over half a billion dollars in bitcoin right now. And obviously, our bitcoin fund started in December. It’s done quite well.”

The crypto recently soared to new heights and set a new record when it traded above $52,600 on Wednesday, according to Business Insider. However, Scaramucci remains cautiously optimistic that given its limited supply and the increasing demand, BTC’s price could nearly double to $100,000 in 2021.

“Be cautious,” the SkyBridge founder said. “I do think we see $100,000 in this coin before year-end… It’s just a supply and demand situation. You don’t have a lot of supply out there and very heavy demand.”

Despite his bullish stance, Scaramucci reminded investors of Bitcoin’s price volatility. “The thing is volatile, and again I want to be cautious with individual investors,” he warned. The crypto rose to near $20,000 during 2017’s rally but plunged by around 80 percent in the correction that followed.

However, many believe that the same level of market correction might no longer happen this time. Unlike the 2017 scenario, the current rally is mainly driven by the participation of institutional investors such as Tesla and Microstrategy.

Aside from Scaramucci, Euro Pacific Capital CEO Peter Schiff also acknowledged that BTC has the potential to reach $100K. “Now that bitcoin has hit $50,000 I must admit that a move up to $100,000 can’t be ruled out,” Schiff tweeted on Tuesday, according to Bitcoin.com.

However, he is also wary of the crypto’s unpredictable price. “A move down to zero can’t be ruled out either,” he added. “While a temporary move up to $100K is possible, a permanent move down to zero is inevitable. If you don’t want to gamble buy gold.”

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