Anthony Scaramucci says BTC’s recent crash will be short-lived

SkyBridge Capital founder Anthony Scaramucci should focus on long-term investments instead of constantly worrying about the dwindling prices of cryptocurrencies. He said this during an interview on January 25. According to Scaramucci, many people in crypto claim to be long-term investors until a short-term bearish market sends them into a state of panic, forcing them to sell their holdings.

Urging investors to avoid this mindset, he said everyone should take a chill pill and take long-term positions on cryptocurrencies like Bitcoin (BTC/USD), Ethereum (ETH/USD), and Algorand (ALGO/USD). He added that investing in such coins would benefit buyers in the long term.

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Scaramucci added that investors should look at the bigger picture and stop looking at BTC’s current price against the US dollar, adding,

We’re getting ahead of ourselves. If it’s 2025, and there’s a billion bitcoin wallets, let’s call it a currency. The dollar is still the dollar. To me, this is an emerging technology that will eventually evolve into a store value as more and more people join the network.

While he is bullish that BTC will make a comeback, Scaramucci said the cryptocurrency’s volatility emanates from low adoption, especially among large corporations. Apart from Tesla, MicroStrategy, and a few others, smaller organizations like hedge funds and small businesses are practically dabbling in the flagship crypto.

Invest without being overexcited

Explaining why he is a long-term BTC bull, Scaramucci said investing in BTC is similar to investing in Amazon between 1998 and 2000.

He pointed out that,

I would never lever an asset like bitcoin because of the volatility and the uncertainty. … It would be like levering Amazon back in 1998, ’99 and 2000.

While he advises his clients to invest in cryptocurrencies, the hedge fund founder asks them not to get too overexcited. To this end, he encourages them to consider investing between 1-4% of their portfolio in the nascent asset class. With such an allocation, he believes his customers will be well-positioned in the future.

Scaramucci’s sentiments mirror those of the founder and President of the Chamber of Digital Commerce, Perianne Boring, who believes BTC’s fundamentals are strong as ever. According to her, the BTC network is growing exponentially. As such, people should stop looking at the coin’s short-term price changes and focus on its value.

Meanwhile, BTC is staging a recovery, gaining 4% over the past 24 hours to change hands at $37,581.23 (£27,846.75). Its market cap is also up 4.03% in the day to hit $714.00 billion (£529.00 billion).