There are indeed plenty of reasons for cryptocurrency investors to worry today. Bitcoin is now trading above $36,000, which is markedly lower than its all-time high set in early November 2021. For clarity, here's a daily chart of BTC, showing both its record and current state.


Bitcoin daily chart

However, this week was not without positives as well. Last night it became known that the US Federal Reserve will keep the base rate unchanged and finish buying bonds at the beginning of March. The cryptocurrency market reacted well to the event, as essentially the niche should have no obstacles to growth until early spring.

What will happen to the cryptocurrency market?

Here is one of Scaramucci’s quotes published by news outlet Decrypt. In it, the investor shares the basis of his own approach to investing in digital assets.

Take it easy, buy Bitcoin and other cryptocurrencies like Algorand and Ethereum. I think you will do well in the long run.


That is, the expert thus reminds us of the ability of cryptocurrencies to recover in value over a long period of time. And indeed: in December 2017, BTC rose to a then-record $20,000. In March 2020, there was a collapse to $4-5 thousand, but in April 2021, Bitcoin had already issued a record $64,000.

And that's BTC, the cryptocurrency with the largest market capitalization, i.e. the product of the exchange rate by the number of coins in circulation. With that in mind, it is more difficult to influence the value of BTC compared to other cryptocurrencies with smaller capitalizations. As a result, the latter have changed in value over the same period much more markedly. And that includes actively growing.


SkyBridge Capital founder Anthony Scaramucci

As a reminder, Bitcoin’s value has already fallen by more than 19 per cent since the beginning of this year. Last week, the cryptocurrency fell as low as $33,000, although more recently its value rebounded to almost $37,800. Scaramucci continues.

We’re getting ahead of ourselves. If there are more than a billion Bitcoin wallets in 2025, it could be called a currency. At the same time, the dollar will remain a dollar. To me, it is a new technology that will eventually become a means of savings as more and more people join the network.

So Anthony has no doubts about the prospect of cryptocurrencies becoming popular and being used in the future. Well, if more and more people will use the coin, then the potential for growth of the same BTC does remain.

The recent rebound in Bitcoin price was not so strong

Scaramucci himself has been a supporter of cryptocurrencies for quite some time. As far back as last March, he stated that the Bitcoin network is resistant to all kinds of attacks and crises, so BTC can be considered a “protected” investment for the long term.

Unfortunately, so far in times of crisis, the crypto market is not the best place for investors’ money. The fact is that in recent months crypto’s dependence on the US stock market has increased significantly. In other words, crypto has fallen as stocks have fallen, and the rate of collapse in cryptocurrencies is usually much faster than in stocks.

The US Federal Reserve’s guidance adds cause for concern. Fed officials are promising to raise the benchmark rate in 2022, several times over. Thus credit will become more expensive, there will be less money in the economy and the dollar will be more attractive for capital preservation, which will affect its strength. Against this backdrop, investors are likely to traditionally extract funds from riskier investments, which include crypto.

However, some outcome in the past does not guarantee it will happen again in the future. Therefore, it is possible that Bitcoin and other coins will be able to add to their fan base even in the most difficult market conditions.


We think Anthony Scaramucci's point of view is logical and understandable. Strong cryptocurrency projects are really good over long timeframes, so buying coins at a discount for the long term might be a really good idea. However, it is important to understand that in that case, you definitely should not invest the last of your money or money that you cannot afford to lose. Otherwise, he won't be able to survive a bear market, which will most likely end up draining assets at the very bottom of the price.


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