Skybridge Estimates Bitcoin’s Fair Market Value at $40,000 and Ethereum’s at $2,800 – Markets & Prices Bitcoin News

Skybridge Capital’s founder says bitcoin’s real market cap is around $40,000 based on adoption, wallet size, use cases and wallet growth. The asset management firm also estimated ethereum’s fair market value at around $2,800.

Skybridge Capital on the Real Values ​​of Bitcoin and Ethereum

Anthony Scaramucci, founder and managing partner of global asset management firm Skybridge Capital, shared his firm’s predictions about the fair market values ​​of bitcoin (BTC) and ether (ETH) in an interview with Marketwatch, published Tuesday.

He believes that the worst of the crypto bear market has passed and bitcoin has already bottomed. His comments followed the bankruptcies of a number of crypto firms, including Celsius Network and Voyager Digital.

“We think the leverage has been blown out of the system,” Scaramucci said. While acknowledging that BTC could still slide, he stressed: “I don’t think it goes below the lows reached for this cycle, which would be around $17,500.”

The Skybridge Capital founder further shared:

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.

He added that the ether’s market value is around $2,800.

At the time of writing, bitcoin is trading at $23,167.48, up 14% in the last 30 days. Ether is trading at $1,650.88, up 43% in the last 30 days.

Scaramucci does not expect the price of bitcoin to go straight up due to macroeconomic uncertainty. “Again, these are volatile assets. I guess the bottom line here is that people have to see these assets for four to five years,” he warned.

The manager noted:

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.

Last month, Skybridge Capital suspended redemptions in its Legion Strategies fund after sharp declines in stocks and cryptocurrencies. About 20% of the fund was in private investments and about 18% was in crypto-related investments, including BTC and private investments in digital asset firms such as crypto exchange FTX, he detailed.

Scaramucci confirmed that withdrawals remain halted, adding that the move was necessary to keep the fund’s composition intact after investment bank Morgan Stanley put a sell recommendation on the fund.

“I can’t make the private investments go too high,” the Skybridge founder stressed. “I can’t let everyone out right now until I can have appropriate fairness and balance in the fund.” He disclosed that the fund is currently selling some of its private investments, noting: “When we get liquidity on these investments, we will let whoever wants to exit.”

Scaramucci has long said that he expects the price of bitcoin to reach $100K this year and $500K in the long term. “If you’re willing to zoom out and look at the long-term chart and look at the adoption history, can bitcoin get to half a million dollars per coin? I think it will,” he said in March. In June, he advised investors to ” buy quality and be unlevered, and stay disciplined.” He noted that many coins will be wiped out.

Commenting on the US economy, the Skybridge CEO said: “I think the second half is going to surprise people because there is already a slowdown in spending.” He meant:

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.

What do you think of Skybridge Capital’s predictions? Let us know in the comments section below.

Kevin Helms

A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of finance and cryptography.