Bitcoin has already bottomed in this cycle, says Anthony Scaramucci

SkyBridge Capital’s founder – Anthony Scaramucci – does not expect the valuation of bitcoin to fall below the $17,500 price tag recorded in June. He also maintained that the asset’s “fair value” should be $40,000, or nearly double its current level.

Still, the executive believes BTC’s price rise won’t happen overnight due to the financial turmoil dominating the world. As such, it could take up to five years for the leading cryptocurrency to get back on its feet.

BTC ‘Fair Value’ of $40,000, ETH – $2,800

It’s safe to say that bitcoin has been in a state of knockdown over the past few months considering its impressive performance last year. In fact, the current valuation of about $23,500 is around 66% less than the all-time high of nearly $70,000 recorded in November 2021. Moreover, at one point in June, the price fell to $17,500, causing panic and uncertainty among investors.

However, according to Anthony Scaramucci, the worst of the bear market is over. The asset may still plunge in the near future, but it should not fall below the $17.5K level, he argued:

“We think the leverage has been blown out of the system. It is possible for bitcoin to slip, but I don’t think it will go below the lows reached for this cycle, which should be around $17,500.”

Scaramucci further claimed that based on “adoption, wallet size, use cases and growth of wallets,” bitcoin’s “fair market value” is currently approximately $40,000. Ether, on the other hand, should be worth around $2,800. However, SkyBridge Capital’s head described the volatility of the crypto market as an obstacle that could prevent the next bull run:

“Again, these are volatile assets. I guess the point here is that people have to look at these assets for four to five years.”

Crypto is a long-term investment

Scaramucci has been an outspoken supporter of the digital asset industry for years now. However, it is worth noting that in many of his appearances, he warned consumers to look at bitcoin and altcoins as an investment strategy that could bring them profits in the long run.

Last month he reiterated his position, admitting that betting on BTC in the short term was a mistake. As a result of the massive exposure, his company lost a significant amount of funds during the crypto winter.

“I don’t regret it… To me, short-termism is a mistake, but remember; everyone is a long-term investor until they have short-term losses. So I will measure the bitcoin investment over a four-year interval. I believe that if you have held bitcoin for a rolling four-year cycle, you’ve made money,” Scaramucci said at the time.

Last year, the executive gave another tip to cryptocurrency investors, advising them to deploy no more than 5% of their total savings in the asset class. Thus, they will still be able to benefit from solid profits in the event of an exchange rate expansion, while losses will be insignificant if the valuation goes south.