Cryptocurrency analyst names conditions under which bitcoin will start growing again

According to Anthony Scaramucci, founder of SkyBridge Capital, the drop in bitcoin value since the start of trading by exchange-traded funds that hold the cryptocurrency was partly caused by sales of Grayscale Bitcoin Trust shares. Scaramucci said this in an interview with Bloomberg on Friday.

Grayscale Bitcoin Trust, founded in 2013, recently recorded a record first-day turnover of $ 2.3 billion. Despite the popularity of this method of investing in bitcoin, shareholders of the trust, faced with losses, began to move to more cost-effective alternatives, which led to the sell-off.

Scaramucci also noted the impact of the FTX bankruptcy on the cryptocurrency market. FTX, formerly one of the largest cryptocurrency exchanges, declared bankruptcy in 2022, which increased pressure on the market. The oversupply caused by the recent sale of FTX assets is expected to end in the next six to eight days.

Scaramucci also predicts changes in the market due to the end of the lull period on Wall Street, when the active promotion and sale of bitcoin ETFs will begin, which will bring new dynamics to the market landscape.