SkyBridge Capital founder Anthony Scaramucci positioned Bitcoin and gold as "part of the answer" to a changing monetary system under strain from fiscal pressures and declining purchasing power. He voiced concerns on X about the potential impact of deficit spending and inflation on the economy, warning that national debt could rise from the current $39 trillion to $55 trillion within the next decade. Scaramucci framed deficit spending as an "unfunded tax liability" that would trigger inflation and borrowing costs, an assessment shared by JPMorgan Chase CEO Jamie Dimon.

Scaramucci added that inflation effectively monetizes debt by eroding the currency’s value, so $1,000 would have only $750 in purchasing power. He pitched Bitcoin and gold as "part of the answer" to this evolving monetary system, deeming them both as inflation hedges. "That’s why I’m long gold. That’s why I’m long Bitcoin," Scaramucci added.

Long-term Projections and Market Cap

Scaramucci has maintained his long-term bullish stance on Bitcoin, asserting that he would allocate roughly 30% of a new portfolio to Bitcoin, alongside AI, U.S. equities, real estate and gold. Even without U.S. regulatory reform, he believes Bitcoin could eventually reach half of gold’s market capitalization. If gold reaches a market value of roughly $50 trillion over the next decade, he believes Bitcoin could grow to around $25 trillion. This valuation would imply a Bitcoin price in the range of $1 million to $1.5 million, depending on circulating supply.

Short-term Outlook and Cycle Analysis

Scaramucci previously deemed the current cycle shallower than previous ones, predicting a rally late in the 4th quarter of 2026 into early 2027. He expects Bitcoin to finish the year above current levels, even without the passage of the CLARITY Act. He sees Bitcoin trading around $70,000 to $75,000 by year-end. At the time of writing, BTC was exchanging hands at $66,203.73, up 1.07% in the last 24 hours.

Legislative Hurdles and Asset Impact

Scaramucci expressed pessimism regarding the passage of the CLARITY Act, noting it may not secure the necessary 60 Senate votes and could be delayed for several years. The legislation is considered more important for altcoins than Bitcoin because the latter already has regulated investment products and has established itself as a digital store of value.

Major cryptocurrencies rose on Tuesday as investors digested reports that the White House agreed to an ethics package accompanying the cryptocurrency Clarity Act. Bitcoin rallied to a 5-week high above $66,900, and is now up 13% month-to-date. Ethereum hit an intraday high of $1,950, while XRP and Dogecoin also climbed. The spike followed reports that the White House agreed to add an ethics provision to the Clarity Act, a key sticking point that has kept the bill tied up amid President Donald Trump’s cryptocurrency business interests.

Market Performance

Major cryptocurrencies posted gains following the news. The table below details the current prices for leading digital assets.

Legislative Hurdles Remain

Despite the optimism, Bitwise Capital partner Jeff Park warned the market is getting ahead of itself with no Democratic support in place. He argued that until language clears the Democratic side, passage odds remain low regardless of how the price reacts. The vote count backs his skepticism: Senator Lindsey Graham’s (R-SC) death removes one Republican vote and Senator Mitch McConnell (R-KY) remains absent, meaning Republicans need at least seven Democratic votes to clear the 60-vote threshold. Park said traders are already positioning for a Clarity Act win in names with the most direct exposure to the outcome, such as Circle (NYSE: CRCL) and Robinhood Markets (NASDAQ: HOOD).

Capital Flows and Liquidations

Bitcoin’s move comes on the back of five consecutive days of ETF inflows totaling roughly $727.3 million. SoSoValue data indicates net inflows of $226.9 million from spot Bitcoin ETFs on Monday, while spot Ethereum ETFs saw net inflows of $38.09 million. Over $200 million was liquidated from the cryptocurrency market in the last 24 hours, with $160 million in bearish shorts erased, according to Coinglass data. Bitcoin’s open interest jumped 4.21% to over $50 billion, indicating an influx of new money into the derivatives market.

Technical Analysis

Ali Martinez, a widely followed cryptocurrency analyst and trader, noted that Bitcoin has faced repeated rejections at the Short-Term Holder Realized Price since November, framing it as the apex cryptocurrency’s biggest test. "With BTC back near $66,000, all eyes are now on $69,340," the analyst added. "If history repeats, that’s where the bulls will have to prove themselves." On-chain analytics firm CryptoQuant said that wallets holding between 1,000 and 10,000 BTC just accelerated their buying "at the fastest pace in months."