The Crypto Market will Recover Soon, Scaramucci Says

Anthony Scaramucci, founder and managing partner of Skybridge Capital, is optimistic about the future of crypto markets, advising investors to “see through the current environment” and “stay patient and stay long term.”

The hedge fund manager spoke in an interview with CNBC, about his belief that several recent developments in the crypto space could lead to “a lot more commercial activity.”

He specifically highlighted the ever-improving Lightning Network, Bitcoin (BTC)-based two-tier payment protocol, BlackRock’s partnership with Coinbase, as well as their subsequent BTC Private Trust as positive signs for the future:

“Finally, CEO Larry Fink is seeing institutional demand for digital assets. Otherwise, he wouldn’t be setting up those products, and he wouldn’t be teaming up with Coinbase.”

He further added, “I just want to remind people that there are only 21 million Bitcoins out there, and you’ll have a demand shock with very little supply”.

In the upcoming Ethereum Merge scheduled for Sept. 15, which will alter the network’s consensus mechanism to proof-of-stake (PoS), Scaramucci cited the event could affect the market price of the second largest cryptocurrency.

Based on his opinion, traders are buying the cryptocurrency based on the positive benefits the merger could bring, but he also notes they could just as fast sell it.

“A lot of traders are probably buying that rumor; they will probably sell on the news of that merger,” he said, adding that “I would caution people not to do that; these are great long term investments,” he added.

There is modest growth on many top cryptocurrencies, despite the ongoing bearish market. According to data from Cointelegraph Markets Pro and TradingView, BTC is up 20% in the last month to sit at $24,954, while the price of Ether (ETH) has risen a hefty 62% to $1999. 

Scaramucci noted that he sees a resurgence of investor interest, and coupled with better-than-expected inflation data in July, he believes the global economy can return to its strength of the fourth quarter of 2019 within six to twelve months.

Scaramucci has a positive view for the crypto market and cautions investors against knee-jerk reactions to bad news and emotion-based trading.

In the next six years, there could be an unprecedented gains in BTC according to his company.

“If we are right, if BTC goes to $300,000 USD a coin, it will not matter if you bought it at $20,000 USD, $60,000 USD; the future is upon us; it’s happening sooner than I thought,” he said:

“If you’re out of the market for the ten best days, you’ve reduced your return from a 7.5% return to a 2% return; I don’t want us to start herking and jerking the portfolio based on emotion.”

“I think that’s the message I’m trying to send to investors; just relax; we see a pretty optimistic scenario for BTC, ETH, ALGO and Solana (SOL) over the next 12 to 24 months,” he added.

While Scaramucci mentioned his firm has a stake in Ethereum competitor Algorand, by far their two most significant positions are still in BTC and ETH.