Anthony Scaramucci, founder and managing partner of SkyBridge Capital, said he believes the worst of the crypto bear market has already passed, following the bankruptcy of crypto hedge fund Three Arrows, lender Celsius and broker Voyager.
Scaramucci made the comments while bitcoin BTCUSD,
is still down 66% from its peak in November, trading at around $23,207 on Tuesday, according to CoinDesk data.
“We think the leverage has been blown out of the system,” Scaramucci said in an interview with MarketWatch. It is possible for bitcoin to slide, but “I don’t think it will go below the lows that were reached for this cycle, which would be around $17,500,” Scaramucci said.
“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 said. He added that ether ETHUSD,
The market value is around 2,800 dollars.
“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,” Scaramucci said. Still, he doesn’t expect the bitcoin price to go straight up, given macroeconomic uncertainty. “Again, these are volatile assets. I guess the bottom line here is that people have to look at these assets for four to five years,” Scaramucci said.
Meanwhile, withdrawals in Skybridge’s Legion Strategies fund remain halted, according to Scaramucci. The firm took the initiative to keep the fund’s composition intact after Morgan Stanley put a sell recommendation on the fund, about 20% of which was in private investments, Scaramucci said.
“We have to be confident. All of our clients and I can’t get the private investments to go too high,” according to Scaramucci. “I can’t let everybody out right now until I can have the appropriate fairness and balance in the fund.”
About 18% of the fund was in crypto-related investments, including bitcoin and private investments in companies such as crypto exchange FTX, according to Scaramucci.
The fund is in the process of selling some of its private investments, Scaramucci said. “When we get liquidity on these investments, we will let whoever wants out.”
On the economy, Scaramucci reiterated his views that the hottest inflation in four decades will soon fall. “I think the second half is going to surprise people because there’s already a slowdown in spending,” he said. “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,” Scaramucci said.
