Hedge Fund CEO Anthony Scaramucci Says Bitcoin 70% Below Fair Value, Predicts Brief Recession This Year: Report
SkyBridge Capital founder Anthony Scaramucci says that Bitcoin is far below its actual real value and that the bottom is probably already in for BTC.
In a new interview with MarketWatch, the veteran hedge fund manager says his firm’s calculations put BTC’s value at roughly $40,000.
BTC is changing hands for $23,422 at the time of writing, about 70% below what Scaramucci says is its true value.
“We think the leverage has been blown out of the system. I don’t think it goes below the lows that were hit for this cycle, which would be around $17,500.
According to our fair market value calculations based on adoption, wallet size, use cases, growth of wallets, we believe that the fair market value of bitcoin right now is around $40,000.”
Scaramucci says he believes top smart contract platform Ethereum (ETH) is also undervalued, with its fair value around $2,800. He also says that technical indicators suggest that BTC and ETH are hugely oversold.
However, he is not necessarily predicting an imminent breakout of BTC and ETH anytime soon due to macroeconomic headwinds.
“We on the margin are net buyers, as incremental cash comes into our funds, we are net buyers of these two assets because we believe they are fundamentally undervalued and technically oversold.
Again, these are volatile assets. I guess the point here is that people have to look at these assets for four to five years.”
The hedge fund’s CEO adds that he expects the recent inflation that has affected markets to subside by the end of the year.
“I think the second half of the year is going to surprise people because there is already a decline in consumption. It will probably be a shallow but not a deep recession because people have a huge amount of savings. And there are more jobs available than people looking for them.”
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