Bitcoin (BTC) has been steadily recovering after facing a series of challenges, most notably the delays surrounding the approval of a Bitcoin exchange-traded fund (ETF). At press time, Bitcoin was trading just below $98,000, a significant climb from its low points, and experts, including Anthony Scaramucci, are optimistic about the cryptocurrency’s future trajectory.

Recovering from Market Setbacks

Bitcoin’s recent price action reflects its gradual recovery from the impacts of a turbulent market, particularly the delays in the approval of a Bitcoin ETF. According to Scaramucci, who appeared on CNBC’s Squawk Box, Bitcoin is currently trading where it “should have been in 2022.” The delayed ETF approval, Scaramucci explained, had a severe effect on Bitcoin’s market sentiment, stunting its price movement and growth during that time.

While Bitcoin eventually surpassed $60,000 in March 2024, its full recovery has taken time. The setback was particularly felt during 2022, as Bitcoin struggled with regulatory delays and market uncertainty. In Scaramucci’s view, these regulatory hold-ups significantly prevented Bitcoin from reaching its expected valuation.

Scaramucci’s Bullish Outlook for 2025

Looking ahead, Scaramucci remains very bullish on Bitcoin, even as he reflects on past difficulties. The founder of SkyBridge Capital still believes that 2025 will be a “very good year” for Bitcoin, with a potential for its price to soar up to $200,000. This new, more ambitious forecast builds on his earlier prediction of $175,000 post-halving.

“Bitcoin’s market should see stronger growth, especially as more institutional investors get involved,” Scaramucci said, citing the increased interest from endowments and sovereign wealth funds, particularly from the Middle East. This institutional influx could provide a major catalyst for further Bitcoin price growth.

However, Scaramucci also admitted that his predictions for Bitcoin over the years have been a mix of both success and failure, stating, “You oscillate between genius and dummy.” Despite past forecasting errors, he still sees the long-term potential for Bitcoin, especially now that the cryptocurrency has reached a stage of relative maturity in the market.

The Role of Regulation and Institutional Investors

One of the key points Scaramucci emphasized during his interview was the importance of the regulatory environment in shaping Bitcoin’s future. While delays in regulation hurt the market in previous years, he credited the Trump administration’s approach to cryptocurrency regulation as a favorable factor for the market’s recovery. With a clearer regulatory framework, Bitcoin is poised for continued growth, particularly as institutional investors start to play a bigger role.

“Bitcoin should have had a spot ETF approval in the first quarter of 2022,” Scaramucci continued. Now that the approval has finally been granted, he believes that the crypto market is on more solid footing. However, he is still watching to see if institutional investors make a decisive move into Bitcoin, which could drive its price further upward.

Market Sentiment and Bitcoin’s Valuation

Another important metric Scaramucci pointed out is the MVRV ratio (Market Value to Realized Value), which is a tool used to assess whether Bitcoin is undervalued or overvalued. A declining MVRV ratio often signals a market correction and presents an attractive entry point for long-term investors. If Bitcoin’s MVRV ratio continues to drop, it could indicate a moment of market weakness, but it also presents an opportunity for cautious investors looking to enter the market at a lower valuation.

The MVRV ratio will be a key indicator for Bitcoin’s future price movement. If the ratio shows an increase, it would suggest that the market has shifted towards a more positive outlook and that Bitcoin’s price could continue its upward trajectory. However, a continued decline in MVRV could signal hesitation from investors.

Conclusion: 2025 Will Be Critical for Bitcoin

Despite the setbacks and regulatory hurdles that have slowed Bitcoin’s growth in the past, the cryptocurrency is showing promising signs of recovery. As Bitcoin nears $98,000, Scaramucci and other experts remain confident that 2025 will be a pivotal year for the digital asset. With institutional interest growing and Bitcoin’s regulatory landscape stabilizing, the cryptocurrency could be on the verge of another historic bull run. However, investors should closely monitor key metrics like MVRV and market sentiment to gauge the direction of Bitcoin’s future price action.

With the potential for Bitcoin to hit $200,000, 2025 could prove to be a landmark year for the digital currency.