Founder of SkyBridge Capital Anthony Scaramucci said that the worst for the crypto market is behind, and Bitcoin has already bottomed in an interview with Marketwatch. He said:
“We believe that the leverage has been blown out of the system. It’s possible for bitcoin to slide, but I don’t think it’s going below the low that was reached for this cycle, which should be at around $17,500,”
After the debacle of hedge fund 3AC, TerraLuna’s stablecoin, crypto lender Celsius, and broker Voyager amid looming recession fears, the crypto market is going through one of its worst phases ever, with most projects down over 70%.
Despite the market conditions, Scaramucci remains optimistic about the future of cryptocurrencies. Scaramucci stated:
“According to our fair market value metrics based on adoption, wallet size, use cases, growth of wallets, we think the fair market value for bitcoin right now is about $40,000,”
He also maintained that Ethereum’s fair value is at $2,800.
However, the fund manager cautioned that even though the next bull run is impending, markets might remain volatile for an extended period of time and advised investors to take a view of four to five years while taking a position.
In an earlier interview with CNBC, Scaramucci had set a target of $100,000 for Bitcoin over the next two years. He reasoned:
“It’s just a supply and demand situation. You don’t have a lot of supply out there and very heavy demand,”
On his mistakes, SkyBridge Capital’s head admitted to betting on BTC in the short run, resulting in considerable losses for his company. He said:
“I don’t regret it… To me, short-term is a mistake but remember; everyone is a long-term investor until they have short-term losses,”
Last year, Scaramucci recommended that retail investors restrict their allocation for crypto assets to 5% – the optimal cushion to avoid significant losses if things go south.