Skybridge Capital "challenges" Musk, Bitcoin hits a two-week low

Source: Huitong.com

In early Asian trading on Thursday (March 25), Bitcoin fluctuated and weakened, hitting a low of $51,705 per coin, the lowest since March 10. Although Tesla CEO and the world's richest man Musk said on Wednesday that Tesla could be purchased with Bitcoin, which generally helped Bitcoin rise nearly 5%, the founder of Skybridge Capital said that digital dollars will appear, which has a significant impact on Bitcoin.

Musk: You can now buy a Tesla with Bitcoin

Musk said in a series of tweets on Wednesday that bitcoin paid to the company will be held in the cryptocurrency and will not be converted into fiat currency.

He said Tesla uses only internal and open-source software and runs a Bitcoin node directly, and that the ability to accept payments in Bitcoin will be available outside the United States later this year.

In addition, Tesla's official website in the United States also announced on Wednesday that it would support Bitcoin payments, but currently it only supports domestic customers in the United States to use Bitcoin for payment, and will consider opening up new markets in the future.

As soon as the news came out, the price of Bitcoin rose sharply, from around US$53,500 to around US$57,204. You can buy a Tesla with less than one Bitcoin.

But the rally failed to continue as some remarks by the founder of Skybridge Capital caused Bitcoin to turn from rising to falling.

Skybridge Capital founder: Bitcoin does not have to become the main currency, there will be a digital dollar in the future

Anthony Scaramucci, founder of SkyBridge Capital and former White House communications director, said on Wednesday that Bitcoin does not need to become a widely used payment method to succeed, and it can thrive as a store of value.

Bitcoin still has little commercial use as a payment method.

"For Bitcoin to be successful...it doesn't have to be a global currency, it can just be a store of value and then you end up converting bitcoin into the different currencies you want to trade," Scaramucci said in an interview at the Reuters Digital Assets Week 2021 event.

SkyBridge Capital launched a Bitcoin fund earlier this year that manages $310 million in assets.

Bitcoin surged to a record high of nearly $62,000 this month, the latest milestone in a surge driven by larger U.S. investors.

Scaramucci said the Trump administration has a "broadly negative" view of Bitcoin because it theoretically threatens the dollar's de facto global reserve currency status. The idea that someone might sell the dollar would be painful for regulators, as well as its use as an economic policy tool.

Admittedly, Bitcoin still has a long way to go before it can replace the US dollar.

But central banks around the world, including the Federal Reserve, are exploring issuing their own digital currencies, in part to counter the rise of public and private cryptocurrencies.

Scaramucci said, "The digital dollar will appear, and the Treasury Department is obviously studying it. The United States will not sit idly by and watch the digitalization of the renminbi without promoting the digitalization of the dollar." The monetary and fiscal stimulus plans launched by the United States in response to the epidemic may also make Bitcoin more attractive in hedging against the depreciation of the US dollar.

Scaramucci also said it is driving more investors into alternative assets like non-fungible tokens (NFTs), a technology that allows digital artworks or other content to be authenticated and sold on a distributed ledger.

Although Scaramucci did not mean to devalue Bitcoin, his mention of the digital dollar has caused some investors to worry about the future of Bitcoin, dragging down the price trend of Bitcoin. From a technical perspective, Bitcoin still faces the risk of further decline in the short term and may test the support of the 50,000 integer mark. The 55-day moving average support is also near this position. The gain or loss of this position may be a watershed for the mid-term trend of Bitcoin.

At 08:11 Beijing time, Bitcoin is currently trading at US$52,515 per coin.