Skybridge Capital is “fairly bullish” on Bitcoin and Ethereum over the next 12 to 24 months. The founder of the global wealth management firm stated that the world’s largest cryptocurrency could hit $300,000 in six years, urging investors to “just relax” and “stay long-term.”
Skybridge bullish on Bitcoin and Ethereum
Anthony Scaramucci, founder and managing partner of global wealth management firm Skybridge Capital, shared his company’s prospects for Bitcoin and Ethereum in an interview with CNBC on Friday.
When asked if the crypto winter is over, he replied, “I would like to caution people to look through the current environment,” citing better-than-expected economic data like inflation and unemployment numbers released last week.
“The crypto market, we believe that most of the leverage is completely outside of this system. So you’re seeing a very strong recovery,” the Skybridge founder described, stating:
It is a reminder for investors not to back down, fight their own fear, be patient and stay long-term.
“We took a break. The pandemic caused this chaos. We put a lot of money into the system which caused some inflation and obviously had the supply chain disruption. But you could very well go back to that fourth quarter of 2019, which was a very strong economy – low unemployment and benign inflation. That’s probably 6 to 12 months away. I think the market is starting to see that,” he said.
Skybridge’s largest crypto positions are in Bitcoin and Ethereum, he noted, adding that the company also likes Solana and has “a very large position” in Algorand.
Sharing his outlook specifically for bitcoin, Scaramucci described “the improvement of the Lightning network, the proliferation of applications, and the ease of transactions using bitcoin,” noting:
You will see a lot more commercial activity there.
Meanwhile “They have The Merge with Ethereum that will lower transaction fees on this network. A lot of traders are probably believing this rumor… They are likely to sell on news of The Merge, which will take place in mid-September,” he said. “I would warn people not to do that. These are great long-term investments.”
The Skybridge founder emphasized:
In the next six years, if we’re right, if bitcoin goes to $300,000 per coin, it won’t matter if you bought it for $20,000 or $60,000. It really won’t matter.
“And I’m just warning people, the future is ahead of us. It’s happening sooner than I thought,” he continued.
Scaramucci then pointed to Blackrock, the world’s largest wealth manager, which recently launched a private Bitcoin trust, citing “significant” demand from some institutional investors. “Finally, Larry Fink [the CEO of Blackrock] sees the institutional demand. Otherwise he would not set up these products and would not merge with Coinbase,” said the Skybridge founder. “If something like this happens, I want to remind people that there are only 21 million bitcoins and you’re going to have a demand shock with very little supply.”
Earlier this month, Scaramucci said the fair market value of Bitcoin is $40,000 and Ethereum is $2,800. In March, he doubled down on his firm’s predictions that Bitcoin would hit $100,000 by the end of this year and $500,000 in the long term.
Scaramucci discourages people from investing based on emotion, noting that the message he’s trying to convey to investors is “see through it.”
“If you’re not in the market on the 10 best days, you’re reducing your return from about 7.5% to 2%. That’s the entire stock market,” he said. “There are a lot of short-time workers, a lot of research departments and different wire companies that react knee-jerk to things and get overly emotional.”
While emphasizing, “We’re trying to tell people, just relax, see through this,” Scaramucci noted:
We see a fairly bullish scenario for Bitcoin, Ethereum, Solana, and Algorand over the next 12-24 months.
What do you think of the comments from Skybridge Capital’s founder? Let us know in the comment section below.
Kevin Helms
photo credit: Shutterstock, Pixabay, Wiki Commons, Lev Radin
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