Skybridge’s Scaramucci on two things that will support demand for bitcoin

Bitcoin fundamentals are “pretty good” in the long term due to factors that will “create a demand shock” for the cryptocurrency, Skybridge Capital’s Anthony Scaramucci said on Monday.

“Everybody is a long-term investor until they have short-term losses,” Scaramucci told CNBC on “Capital Connection.”

Investors may see some losses on bitcoin, “but I think long-term the fundamentals are pretty good,” he added.

Bitcoin remains more than 60% below its all-time high of nearly $69,000 in November.

In June, bitcoin plunged to $17,958, its lowest level since December 2020, according to Coin Metrics data. Bitcoin last traded at $24,047.28, down 2.4% in the past 24 hours at 4:57 a.m. ET on Monday, CoinDesk data showed.

Scaramucci said he is optimistic that “two big things have happened on the institutional side” that are likely to generate demand for bitcoin.

“Fidelity allows their 401,000 products to offer bitcoin,” he stated as the first reason, referring to financial firm Fidelity Investments which allows companies to offer employees the opportunity to invest up to 20% of their retirement and savings plan. in bitcoin.

Scaramucci cited Blackrock’s offering of a private trust for clients to invest in bitcoin as another reason that will generate tailwinds for the cryptocurrency.

“Blackrock said in addition to teaming up with Coinbase on their Aladdin risk management program … they will be offering a private trust that will give their customers an opportunity to invest directly in bitcoin.”

The investment management firm, which has about $8.5 trillion in assets under management, recently announced a partnership with Coinbase that allows its institutional clients to buy crypto, starting with bitcoin.

Scaramucci said that ethereum’s upcoming so-called “merger” is one reason why the decentralized blockchain-based network rose in value.

“Ethereum is coming together and reducing their gas fees and transaction fees. And that’s one of the reasons why ethereum is up about 70 plus percent in the last five and a half weeks.”

Ethereum, the second largest cryptocurrency by market capitalization, conducted a final dress rehearsal last week ahead of a long-awaited upgrade that has been billed as one of the most important events in crypto history.

Ether, which is used to power the ethereum blockchain network, rose to a two-month high after the last dry run for the merger. The token last traded at $1,905.40, down 4.7% in the last 24 hours, according to CoinDesk.