Amidst a broader sell-off in the crypto market, Bitcoin has pulled back from its peaks.

However, experts believe the cryptocurrency has room to grow, supported by factors such as the introduction of Bitcoin-linked exchange-traded funds (ETFs).

Anthony Scaramucci of Skybridge Capital attributes the price drop to a combination of factors, including profit-taking and the initial excitement surrounding ETFs fading.

However, he emphasizes the significant demand generated by these ETFs, with over $10 billion flowing in during the first quarter.

Scaramucci argues that Bitcoin’s price could reach half the valuation of gold, indicating a potential move to between $170,000 and $340,000.

Despite its volatility, he believes Bitcoin’s long-term adoption and value as an inflation hedge contribute to its strength.

While the cryptocurrency market has been correlated with riskier assets, Scaramucci suggests Bitcoin is starting to decouple.

He highlights that even during market weakness, Bitcoin has shown resilience, potentially indicating its role as a hedge against inflation over the long term.

Scaramucci also discusses the collapse of FTX and the recent sentencing of its founder, Sam Bankman-Fried.

Expressing sympathy for Bankman-Fried while acknowledging his legal responsibility, Scaramucci critiques the argument that investors did not lose money due to Bitcoin’s price recovery.

He believes the U.S. Securities and Exchange Commission’s (SEC) delay in approving a spot Bitcoin ETF inadvertently exposed problems in the industry and contributed to its overall strength.

Despite his criticisms of the SEC’s approach to crypto regulation, Scaramucci commends them for facilitating the Bitcoin futures ETF and ultimately promoting a more robust and sound market ecosystem.

Bitcoin ETFs boost demand and have substantial growth potential, presenting a bullish case for Bitcoin’s future.

The introduction of Bitcoin ETFs has significantly increased demand, with over $10 billion flowing into these funds in the first quarter alone.

This strong demand supports the belief that Bitcoin has room to grow in value.

Despite volatility, Bitcoin is increasingly seen as an inflation hedge, indicating its growing recognition as a valuable asset.

Scaramucci highlights Bitcoin’s potential to reach a valuation between $170,000 and $340,000 due to its adoption as an inflation hedge.

The increasing demand for Bitcoin during market weakness reinforces its long-term strength and value.

Regulatory delays and scandals can have a negative impact on the industry but also contribute to long-term stability.

The delay in approving a spot Bitcoin ETF by the SEC exposed issues within the industry, but it also strengthened the market by encouraging robust practices.

Additionally, the fall of FTX and the punishment of its founder have shed light on the importance of sound regulation and its role in promoting a healthy crypto ecosystem.