Could the worst of the crypto bear market be over? According to former White House communications director and crypto bull Anthony Scaramucci, the price of bitcoin has officially bottomed out. Investors will not see things get worse from here, and he thinks BTC is fairly valued at around $40K.
Scaramucci Thinks the Worst Is Over
In a recent interview, Scaramucci stated:
We believe that the leverage has been blown out of the system. I don’t think it’s going below the low that was reached for this cycle, which would be at around $17,500. According to our fair market value metrics based on adoption, wallet size, use cases, [and] growth of wallets, we think the fair market value for bitcoin right now is about $40,000.
The crypto market, as of late, has been experiencing some of the most bearish conditions the world has ever seen. Bitcoin, for example, is the world’s number one digital currency by market cap. Last November, it reached a new all-time high of approximately $68,000, though at the time of writing, it’s struggling to maintain a position in the low $20K range. The crypto market, in total, has lost more than $2 trillion in overall valuation in just the past few months alone.
Scaramucci continued his interview with:
We on the margin are net buyers as incremental cash comes into our funds. We’re net buyers of those two assets because we think they’re fundamentally undervalued and technically oversold. Again, these are volatile assets. I guess what’s at issue here is [that] people need to take a four to five-year view of these assets.
Scaramucci is the founder and managing partner of Sky Bridge Capital. At the time of writing, the company has halted all withdrawals, meaning customers cannot take their money out of their accounts. The move is designed to keep the company stable as the market works itself out, though this has garnered controversy given it’s following in the footsteps of firms like the Celsius Network, which eventually filed for bankruptcy.
Scaramucci assures traders that his company is not in trouble, though they are thinking ahead and trying to prepare. He said:
We [must] be fiduciary. All our clients and I can’t have the private investments go too high. I can’t let everybody out right at this second until I can have appropriate fairness and balance in the fund.
Keeping the Company Stable
Right now, roughly 18 percent of the assets held at Sky Bridge consist of cryptocurrencies. Scaramucci finished with:
Once we get liquid on those investments, we will then let whoever wants to get out… I think the second half of the year is going to surprise people because there’s already a slowdown in consumption. There will likely be a shallow, but not a deep recession because people have a tremendous amount of savings.