Wall Street Giant Predicts Bitcoin to Surpass $100,000 by Year's End, Citing Fed Rate Cuts and Crypto Regulation as Key Drivers

Wall Street Giant Predicts Bitcoin to Surpass $100,000 by Year's End, Citing Fed Rate Cuts and Crypto Regulation as Key DriversAnthony Scaramucci, a prominent Wall Street hedge fund manager, has recently predicted that Bitcoin will break through the $100,000 mark by the end of this year, setting a new all-time high. He believes that the post-election period, coupled with the Federal Reserve's interest rate cut cycle and the emergence of clear crypto-friendly regulatory frameworks in the US, will fuel a significant surge in Bitcoin's price

Wall Street Giant Predicts Bitcoin to Surpass $100,000 by Year's End, Citing Fed Rate Cuts and Crypto Regulation as Key Drivers

Anthony Scaramucci, a prominent Wall Street hedge fund manager, has recently predicted that Bitcoin will break through the $100,000 mark by the end of this year, setting a new all-time high. He believes that the post-election period, coupled with the Federal Reserve's interest rate cut cycle and the emergence of clear crypto-friendly regulatory frameworks in the US, will fuel a significant surge in Bitcoin's price.

After the election, well get pro-crypto, pro-Bitcoin, and pro-stablecoin legislation in the US Congress in the first part of the next congressional term, predicted the SkyBridgeCapital founder in an interview on Wednesday. And thats going to coincide with crypto regulation and the Fed rate cut cycle.

Scaramucci expressed a preference for bipartisan crypto legislation with support from both Republicans and Democrats. He expressed optimism about a Harris-led administration enacting rules favorable to crypto development, citing her campaign's discussions about potential support for the crypto space. Last month, an advisor to the Harris campaign indicated she would support measures to facilitate the development of the crypto industry while maintaining appropriate safeguards.

Regarding the Fed's anticipated rate cut in September, Scaramucci expects a 50-basis point reduction in borrowing costs, describing it as the initial step in a broader 150-basis point cut over the next 18 months. Thats going to be very favorable for asset prices, both in the US and globally, he added.

Driven by the fervent demand for US exchange-traded funds (ETFs) focused on Bitcoin, the world's largest digital asset reached an all-time high of $73,798 in March. The momentum slowed as the influx of funds into ETFs cooled. Before the Fed's policy decision, the cryptocurrency rallied about 5% in the past two days, trading at $60,399 at the time of publication.

Cryptocurrency has emerged as a prominent topic in the upcoming 2024 US Presidential election. Republican candidate Donald Trump has called for America to become the "world's Bitcoin superpower," a crypto-supportive slogan that could sway crypto enthusiasts and institutional leaders to cast their votes in his favor. His running mate, Senator JD Vance (R-Ohio), also supports crypto, and their campaign has been accepting cryptocurrency donations.

Notably, following a series of pronouncements from numerous Republican lawmakers led by Trump expressing support and admiration for the crypto industry, Democrats appear to be shifting towards a more accepting stance on crypto. Senate Majority Leader Chuck Schumer, a Democrat, has recently stated that passing bipartisan crypto regulatory guidelines this year is "absolutely possible." While Harris has yet to formally share her views on the crypto industry, the supportive voices from high-ranking Democrats suggest she might moderate the Biden administration's previously hardline approach to crypto.

Standard Chartered recently reiterated its expectation that Bitcoin will reach a new all-time high by the end of 2024, regardless of the outcome of the US presidential election. The bank's head of digital assets also predicted that Bitcoin could reach $125,000 if Trump wins the US presidency.

Dan Tapiero, a prominent fund manager from 1RoundTablePartners, also expressed bullish sentiments about Bitcoin's future trajectory. He predicted, "In the next six months, I think Bitcoin is going to go above $100,000 and I think Ethereum is going to go above $5,000. I think a crypto bull market is coming."

Scaramucci's forecast is not unique; multiple institutions and market participants are optimistic about Bitcoin's price trajectory by year-end. Investors generally believe that the combination of the Fed's rate cut cycle and the emergence of clarity in US crypto regulation will usher in a new bull run for Bitcoin, potentially driving its price beyond previous highs. However, market volatility remains substantial, and investors must carefully assess risks and allocate assets rationally based on their individual circumstances when making investment decisions.