Bitcoin fell sharply to $60,000 this week, shaking investor confidence, even though the market has many positive developments. On CNBC’s Closing Bell Overtime, SkyBridge Capital founder Anthony Scaramucci explained why Bitcoin can still have big swings, despite favorable regulation, the approval of ETFs, and growing interest from large investors.
A Rough Week for Bitcoin
This week, Bitcoin saw a steep drop followed by a quick rebound, showing that it remains unpredictable. This happened even though many consider recent events as wins: spot Bitcoin ETFs are now available, institutions are investing, and U.S. regulations are becoming clearer. Still, instead of stable prices, Bitcoin fell hard, leaving investors puzzled.
Scaramucci said the recent drop is uncomfortable but not unusual for Bitcoin.
Bitcoin Is Still an Early-Stage Asset
Scaramucci emphasized that Bitcoin is still in its early adoption phase. He doesn’t call it just “digital gold” or a hedge against inflation, but a new type of technology with characteristics of both money and gold. Early-stage assets often have big ups and downs.
He added that most Bitcoin investors are younger. Older, wealthier investors often prefer traditional safe-haven assets like gold and silver. That’s why those assets rose earlier this year while Bitcoin struggled to stay at its highs.
Regulatory Clarity Could Boost Confidence
A major factor holding Bitcoin back, according to Scaramucci, is uncertainty around U.S. regulations. He highlighted the importance of the Clarity Act. Even with ETFs, many banks and institutions hesitate to invest fully without clear government guidance.
If such legislation passes, it could bring in a new wave of large investors. Until then, uncertainty is likely to keep Bitcoin prices volatile.
Why ETFs Haven’t Made Bitcoin Stable Yet
Even with institutional buying and ETFs, Bitcoin still reacts strongly to market conditions. Scaramucci said the recent price drop was actually smaller than past cycles. For example, a fall like this might have pushed Bitcoin down to $38,000 before, but this time it held near its 200-day moving average. This shows some support from ETFs and big buyers.
He also pointed out that fear is very high in the market. The Fear & Greed Index dropped to 5, one of Bitcoin’s lowest levels ever, which usually happens during major sell-offs rather than market peaks.
Despite the chaos, Scaramucci remains confident. He called the recent drop a “normal correction” and revealed he bought more Bitcoin during the dip. For him, volatility is just part of owning an asset that is still early in global adoption.
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FAQs
Yes, Bitcoin is an early-stage asset with big price swings, influenced by adoption trends, ETFs, and ongoing regulatory uncertainty.
Clear regulations could attract institutional investors and reduce volatility, but current uncertainty keeps Bitcoin unpredictable.
Early adoption, a younger investor base, and Fear & Greed-driven sentiment make Bitcoin prone to large swings.
Buying during dips can be an opportunity, but it carries risk; volatility is normal for Bitcoin’s early-stage market.
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