Anthony Scaramucci, the CEO of SkyBridge Capital, is sticking with Bitcoin even as the cryptocurrency struggles after a recent dip from the key technical level of $30,000.
The former White House communications director shared his bullish conviction during an interview with Bloomberg on Thursday. Speaking about the current market outlook for stocks and crypto amid the US debt limit crisis talks, Scaramucci said of Bitcoin:
“I’m sticking with it, you know it’s interesting I haven’t changed the portfolio at all and I think we’ve been rewarded by that because a lot of things happened last year.”
Bitcoin’s value intrinsically worth $40,000
The Skybridge Capital founder highlighted the potential for Bitcoin’s price to bounce higher by summing up one of the factors that catalysed the 2022 dump.
While the crypto winter witnessed the LUNA crash, Three Arrows Capital demise and a host of crypto bankruptcies amid contagion, the FTX collapse and the turmoil that Sam Bankman-Fried and co wrot to crypto was perhaps the biggest catalyst.
According to the hedge fund manager, everything about the one-time “crypto genius” now looks like “a baby [of] John Meriwether and Bernie Madoff.
The fraud, over leverage and excess confidence ended with the crypto market in a big depression, he noted. As Invezz covered here, FTX had acquired a 30% stake in Skybridge Capital, before the exchange filed for bankruptcy to see the native FTX Token dump to near zero.
Explaining why he is bullish on Bitcoin, Scaramucci said:
“The market is probably overshot to the downside and so we think intrinsically Bitcoin’s worth about $40,000. It’s trending right now at $25,000 to $27,000, but what we do see is better miner activity, we see wallet expansion.”
Scaramucci says adoption could see BTC price explode
Scaramucci has previously talked about Bitcoin’s strength as a store of value, and appears to still hold that view given his remarks on where Bitcoin price is and what could happen. In his opinion, BTC is not just undervalued, but has potential to explode in the future given wallet growth.
“I have talked about this off air so let’s repeat it – you have 4% global absorption for Bitcoin – about 340 million wallets. That’s roughly where the internet was in 1998. We just have to get from 4% to 8% and you’ll see explosive returns in Bitcoin.”
He believes the key to getting it right as a long term investment is to be patient.
Bitcoin was trading around $26,915 on Friday morning, according to data from CoinGecko. This meant the price was down roughly 2% as indecisiveness reigned after last week’s rejection from above $28,000. BTC price has risen to above $31,000 in 2023. The current price is more than 60% off the all-time high of $69,000 reached in 2021.
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