- SkyBridge Capital is planning to move its focus toward macro trading strategies.
- Meanwhile, regulatory delays in Washington are slowing down market growth.
- Despite this, long-term Bitcoin fundamentals still appear strong, despite the recent price drops.
Anthony Scaramucci seems optimistic about the Bitcoin market this year
The founder of SkyBridge Capital recently shared his views at the World Economic Forum in Davos. While speaking, he noted that he believes the long-term story for digital assets has not changed.
While recent prices showed some weakness, he sees this as a timing problem and does not see it as a change in the overall direction of the industry.
Anthony Scaramucci Analyses the Bitcoin Market
The current Bitcoin market is showing signs of being in a consolidation phase, and Scaramucci noted that assets with high volatility tend to behave this way. He mentioned that a cooling period is normal, especially after the market rallies from last year.
He also said that he still believes his higher price targets are coming and he wants to see the asset return to the $125,000 to $150,000 range soon.
Prices recently sat around $88,000 according to data from CoinMarketCap and tradingView. This stands as a drop from the all-time high of $126,000 reached in October, and this 30% decline has tested the faith of many traders so far.
However, Scaramucci is still positive about the market’s fundamentals. He noted that the asset often does whatever it wants, and he expects an okay year for investors who can handle the swings.
Legislative Changes and the Bitcoin Market
Regulation is an important part of how investors feel right now. The industry recently expected a faster pace for new laws in the United States and Scaramucci admitted that he and others misjudged how quickly Washington would move.
Some progress has happened so far, like the GENIUS Act that became law last July. This provided a much-needed framework for the industry.
However, the Clarity Act is still moving through the Senate and this delay has tempered some of the excitement over the near term.
SkyBridge Capital Adjusts Its Portfolio
SkyBridge Capital is even changing how it handles current market conditions and is leaning harder into macro trades.
Policy uncertainty under the US’s current presidency is keeping the market on edge, and this level of chaos actually helps macro traders perform better.
Court filings also show a clear difference in how the SkyBridge Opportunity Fund manages its finances because by late last year, the fund had moved to a macro weighting of about 69%.
This move shows that the firm is moving carefully towards the market right now, and it likely wants to stay balanced as the next big move happens.
The Effect of Forced Liquidations
The ride through last year left some scars on the market and many traders. When prices tumbled from its recent high, more than $19 billion in forced liquidations hit the market and removed a lot of the excess heat from the system.
It was a painful moment for many retail traders, but highly necessary according to analysts.
Scaramucci believes that the event was necessary as well, because deep drawdowns have a way of clearing the path for more organic price increases.