Billionaire investor Anthony Scaramucci, founder of SkyBridge Capital, recently discussed the viability of financial assets. Hex.com/Scaramucci/status/1783702183931752820″ target=”_blank” rel=”nofollow”> led toa social media platform formerly known as twitter and owned by Elon Musk, to highlight the declining purchasing power of the US dollar compared to the potential of bitcoin (btc).
US Dollar vs. bitcoin Value Performance
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According to Scaramucci, this scenario illustrates why investors should reconsider traditional fiat currencies as a reliable store of value, advocating instead for the inherent benefits of digital assets like bitcoin.
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The 2020 dollar is now worth 75 cents. Buy bitcoin Credit twitter.com/balajis?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>@balajis pic.twitter.com/WzIosKfJv2
-Anthony Scaramucci (@Scaramucci) twitter.com/Scaramucci/status/1783702183931752820?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>April 26, 2024
Scaramucci's criticism comes at a time when the global economy is facing high inflation rates, which have eroded the real value of fiat money.
He specifically cited a “compound inflation rate of 25.14%” as a critical indicator of why the dollar is losing ground. By contrast, bitcoin has not only maintained a strong profile but has also appreciated, further cementing its position as a viable inflation hedge and potential safe haven for investors.
So far, the performance of the bitcoin market has been quite attractive. Notably, despite the significant decline experienced in recent years, the asset has managed to emerge from the bloodbath and recently skyrocketed to an all-time high above $73,000 in March.
This top performance labels bitcoin not only as a digital asset but as a major player in the global financial landscape.
However, despite Scaramucci's bullish outlook, it is worth noting that bitcoin has seen its share of volatility. It has been struggling to maintain its appeal recently, with a modest 0.9% rise in the past 24 hours, a slight recovery from a 2% drop over the past week.
Changing btc Market Sentiments
More information on market behavior towards bitcoin reveals changing dynamics. Data from CryptoQuant highlighted a negative turn in bitcoin's funding rate for the first time since October 2023, indicating declining interest in speculative trading of the asset.
This shift suggests that while the long-term outlook could remain strong, short-term investor sentiment has become cautious, possibly awaiting clearer signals before making new commitments.
The current market sentiment is also reflected in the technical analysis of a prominent crypto analyst, Ali. In Ali's recent post on a bearish signal.
Furthermore, the Tom Demark (TD) Sequential Indicator points to possible price reversals after a consistent trend, adding another layer of complexity to the bitcoin trading strategy.
Despite these potentially bearish indicators, Santiment's on-chain data shows an interesting trend: bitcoin whales have significantly increased their holdings and now own 25.16% of the total supply.
This accumulation suggests that while retail sentiment may be bearish, large-scale investors are viewing dips as buying opportunities, potentially setting themselves up for a future bull run.
Featured image from Unsplash, chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.
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