Scaramucci highlights key factors why the crypto market will recover soon
Skybridge Capital founder and managing partner Anthony Scaramucci has an optimistic view of the future of crypto markets, advising investors to “look through the current environment” and “be patient and stay long-term.”
In an interview with CNBC, the hedge fund manager spoke of his belief that several recent developments in the crypto space could trigger “a lot more commercial activity.”
In particular, he highlighted the ever-improving Lightning Network, the two-layer payment protocol layered on top of Bitcoin (BTC), BlackRock’s partnership with Coinbase, and their subsequent establishment of a BTC Private Trust Fund as positive signs for the future.
Finally, CEO Larry Fink sees institutional demand for digital assets. Otherwise, he wouldn’t have set up these products and he wouldn’t have merged with Coinbase.
“I just want to remind people that there are only 21 million Bitcoins out there and you will have a demand shock with very little supply,” he added.
Ethereum Merge on the Horizon
Scaramucci cited the upcoming Ethereum (ETH) merger scheduled for September 15, which will change the network’s consensus mechanism to proof-of-stake, as an event that could affect the market price of the second largest cryptocurrency.
In his opinion, traders are buying the cryptocurrency based on potential positive effects the merger could bring, but he also notes that they can turn around and sell just as quickly.
“A lot of traders are probably buying that rumor; they’re probably going to sell on the news of that merger,” he said, adding that “I would caution people against doing that; these are good long-term investments,” he added.
Recovery slow but steady over the past month
Despite the ongoing crypto bear market, many of the top cryptocurrencies have posted modest gains. BTC has risen 20% in the past month to sit at $24,959 USD at the time of writing, while the price of ETH has risen a hefty 62% to $1,999 USD, according to data from
Scaramucci noted that he had seen a resurgence in investor interest, and with better-than-expected inflation numbers in July, he believes the global economy could return to its strong 2019 Q4 status within 6 to 12 months.
Overall, Scaramucci has a positive outlook for the crypto market and warns investors to beware of knee-jerk reaction to bad news and emotional trading.
His firm believes BTC could see an unprecedented rally over the next six years.
“If we’re right, if BTC goes to $300,000 USD per coin, it won’t matter if you bought it for $20,000 USD, $60,000 USD; the future is upon us; it’s happening faster than I thought,” he said.
“If you’re out of the market for the best ten days, you’ve reduced your return from 7.5% return to 2% return. I don’t want us to start jerking and jerking the portfolio based on emotion.”
“I think that’s the message I’m trying to send to investors; just relax; we see a pretty bullish scenario for BTC, ETH, ALGO and Solana (SOL) over the next 12 to 24 months,” he added.
Scaramucci mentioned that his firm has a position in ETH competitor Algorand (ALGO), but by far their two most important positions are still in BTC and ETH.
