Bitcoin Reaches A 70% YTD Price Increase, Would Regulations Hinder The Crypto Rise?

Anthony Scaramucci, the founder of SkyBridge Capital, voiced confidence in his company's cryptocurrency investments following Bitcoin's outstanding start to 2023 by asserting that "we're through the bear market."

The Mooch clarified that his opinion is just a guess and the company is not so sure about the actual price performance of the world’s largest crypto to date.

Scaramucci stressed that over longer periods of time, Bitcoin has consistently managed to stay ahead of other assets in terms of increase over time.

“But any time that you’ve held Bitcoin in a four-year rolling interval, so you pick the day, hold it for four years, you’ve outperformed every other asset class.”

Prior to the upcoming halving cycle, which according to NiceHash is scheduled to begin in early March 2024, Scaramacci again emphasized his positive forecast for the top cryptocurrency by market valuation. Historically, Bitcoin has been on a four-year cycle, with an uptrend beginning immediately after each cycle of halves.

The idea behind the price cycle is that by halving block rewards, Bitcoin becomes more valuable because there are fewer of them in circulation. According to various data sources, Bitcoin has increased from $16,521 to $28,060 in 2023, a gain of about 70%, as opposed to the S&P 500 index, which has increased by just over 7% during the same period. In addition, Bitcoin has had a stellar start to 2023 despite what can only be considered as unfavorable market and regulatory conditions, which might yet pressure the price performance of crypto assets.

Will a crypto regulatory havoc occur?

Following the failure of crypto-friendly banks like Silvergate, Silicon Valley, and Signature Bank, American-based crypto institutions are having a difficult time locating banking partners and liquidity, and there are concerns that the U.S. is enacting legislation that will forbid banks from working with cryptocurrencies.

Additionally, regulators have recently scrutinized two of the biggest cryptocurrency exchanges in the world, Binance and Coinbase. While Binance has been sued by the Commodity Futures Trading Commission for allegedly breaking trading and derivatives regulations, Coinbase received a Wells notice from the Securities and Exchange Commission on March 22 warning of potential enforcement action.

The failure of cryptocurrency-friendly banks like Silicon Valley, Silvergate, and Signature Bank has made it difficult for American-based crypto institutions to find banking partners and liquidity, and there are worries that the U.S. is passing legislation that will prevent banks from cooperating with cryptocurrencies.

However, despite the regulatory havoc, the outlook for cryptocurrencies is still favorable. The gauge of cryptocurrency moods, the Crypto Fear & Greed Index, is now in the greed zone and on pace to reach new highs not seen since November 2021, when Bitcoin reached its all-time high.