In a recent interview with CNBC, Scaramucci highlighted the vulnerability of Bitcoin to geopolitical events such as war or terrorist attacks. He suggested that such occurrences could trigger a significant drop in Bitcoin’s value, potentially ranging between 10% to 15% over the course of the next year.

Scaramucci’s assessment comes at a time when Bitcoin’s role as a hedge against inflation and a store of value is still in its early stages of adoption. Despite its growing popularity, Scaramucci believes that Bitcoin’s true potential as a mainstream asset class will only be realized once its user base surpasses the 1 billion mark.

“We’re still in a phase where Bitcoin is viewed more as a speculative asset, rather than a stable store of value,” Scaramucci remarked during the interview. “Until we see widespread adoption, volatility is likely to persist.”

Recent events have underscored Bitcoin’s susceptibility to geopolitical tensions. Following reports of a missile strike in the Middle East, Bitcoin experienced a sharp decline, dipping below the $60,000 mark. Investors, wary of escalating conflicts, often seek refuge in traditional safe-haven assets such as gold and government bonds.

Despite short-term fluctuations, Scaramucci remains optimistic about Bitcoin’s long-term trajectory. He points to several factors that could drive Bitcoin’s value upwards, including the recent launch of a Spot ETF, increased institutional involvement, and an upcoming halving event.

Addressing concerns about the centralization of Bitcoin ownership, particularly with the rise of ETFs, Scaramucci reassures investors that institutional holdings represent only a fraction of the overall market. He estimates that institutional ownership, including major players like BlackRock, accounts for less than 10% of Bitcoin’s total market capitalization.

Speaking in an interview with CNBC, Scaramucci delved into the delicate balance of Bitcoin’s role in the financial ecosystem. He highlighted the current volatility of the cryptocurrency, emphasizing that until its user base surpasses 1 billion, it may continue to be perceived more as a speculative asset than a reliable hedge against inflation or a store of value.

The timing of Scaramucci’s remarks couldn’t be more poignant, as Bitcoin recently dipped below the $60,000 mark amidst escalating geopolitical tensions. Reports of an Israeli missile strike on Iran sent shockwaves through the market, underscoring the vulnerability of digital assets to real-world events.

During times of geopolitical uncertainty, investors typically seek refuge in traditional safe-haven assets like gold and government bonds. However, Scaramucci remains optimistic about Bitcoin’s long-term prospects, citing factors such as the recent launch of a Spot ETF, increased institutional participation, and the upcoming halving event as potential catalysts for its ascent.

Addressing concerns about the growing centralization of Bitcoin due to ETFs, Scaramucci downplayed the significance of institutional ownership, noting that it represents less than 10% of the overall market. He believes that the broader adoption of Bitcoin by retail investors and the continued innovation within the cryptocurrency ecosystem will drive its value higher in the years to come.

Scaramucci’s revised price prediction for Bitcoin reflects his bullish outlook on the cryptocurrency. Previously projecting a target of $170,000 by mid-to-late 2025, he now believes that Bitcoin could soar even higher, potentially reaching $200,000 or beyond.

The halving event, a technical phenomenon unique to Bitcoin, is expected to further impact its supply dynamics. Scheduled to occur between April 19 and 20, this event will halve the reward for miners who validate transactions, reducing the rate of new Bitcoin entering circulation.

In conclusion, while Bitcoin faces short-term volatility amid geopolitical uncertainties, its long-term prospects remain promising. As the cryptocurrency ecosystem continues to evolve and mature, Bitcoin may emerge as a resilient asset class capable of weathering geopolitical storms and delivering substantial returns for investors.