Scaramucci Sees Bitcoin Rallying Above $100K Amid Short Squeeze
Bitcoin's price surge has led to a short squeeze that punished bearish traders. On August 18, the analytics account The Data Nerd posted on X about a Hyperliquid trader whose $117 million short bet against bitcoin was being eaten alive. The trader's 1,800 BTC ($117M) short got partially liquidated, with 360 BTC ($23.36M) wiped in the move.
Anthony Scaramucci, founder of SkyBridge Capital and former White House Communications Director, sees this as a sign that the bear cycle is ending and believes Bitcoin will return above $100,000. Scaramucci argues that the current bear market has been relatively shallow, with a 54% fall from October's peak to June's low, compared to earlier cycles where prices dropped by 75-80%.
BlackRock views the sell-off as 'largely driven by crypto-native deleveraging and shifting investor flows rather than a fundamental change in bitcoin's long-term investment case.' However, not everyone is convinced. Bloomberg counted $389.71 million leaving US spot Bitcoin ETFs in the week to August 14, the biggest outflow in six weeks.