The founder and CEO of SkyBridge Capital says that the global investment firm is holding on to its crypto positions despite the dramatic downturn of the markets.
In a new interview on CNBC, Anthony Scaramucci says that crypto is currently facing a bear market that’s more challenging than usual.
“In March of 2020, when Bitcoin got down between $4,000 and $6,000, there was $70 billion lost. Think of the magnitude of what we’re talking about. Now it’s an $800 billion correction. I think the good news about that frankly is because this is decentralized, you don’t have any systemic risks…
I just want you to imagine that kind of hit to the banking community, how dramatic that would be and what the Federal Reserve would need to do. It’s just an example of decentralization being what I would describe as less fragile than the core system.”
Despite the massive losses of the current correction, Scaramucci remains optimistic that the prices of crypto assets will recover. He references similar corrections in equities markets in the early 2000s.
“We can draw historical context back to March 2000 where we saw the Nasdaq go from something like 5,000 and change down to 2,300… I think these assets are at distressed level prices. They are technically oversold, and so we haven’t sold one position, frankly.
Still our core fund has about 18% exposure to Bitcoin and Ethereum and I’ll just point out to people if you bought this stuff when we did back in October of 2020, these coins were trading $18,000 or so for Bitcoin, $700 or so for Ethereum. If you take a long-term perspective and sort of zoom out, you can do very well in the cryptocurrency markets.
Listen, everybody is a short-term investor when you have losses like this – that cliché that I’m a long-term investor until I have short-term losses – and so I understand the panic in the markets.”
Scaramucci says that while the collapse of the Terra ecosystem had a significant effect on the crypto markets, he says that flagship cryptocurrencies like Bitcoin and Ethereum will carry on in a long-term uptrend.
“What I would encourage people to think about is two core protocols, Bitcoin and Ethereum. Zoom out and take a look at what they have done over a five-year period of time and recognize that there was a flaw in the Terra LUNA mechanisms…
Skybridge never owned any of those tokens. Many people spoke out against that and when that crumbled, you saw massive selling pressure, so I think this thing is technically oversold.
We’re long-term optimistic and unfortunately for me, I’m getting old. This is my eighth bear market cycle, and I just want to encourage younger people tuning in, perhaps it’s their first or second bear market cycle, to see through the carnage and recognize that there’s an extraordinary opportunity ahead like there was in March of 2000.”
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Source: https://dailyhodl.com/2022/05/16/ceo-of-7000000000-hedge-fund-says-firm-hasnt-sold-any-crypto-positions-during-market-collapse/