SkyBridge Capital founder Anthony Scaramucci does not believe bitcoin’s value will fall below $17,500 as it was in June. He maintained that the asset’s fair value should be $40,000, which is almost twice the current price.
The executive believes that BTC’s price rise will take time due to the global financial turmoil. It could take five years for the most popular cryptocurrency to get on its feet again.
BTC ‘Fair Value’ of $40,000; ETH – 2,800
Given its incredible performance last year, it is obvious that bitcoin has been in a state where it is now. Its current value of $23,500 is 66% lower than its November 2021 record of almost $70K. Investors were also panicked when its price fell to $17500 in June.
Anthony Scaramucci claims that the worst of the bear markets is over. Although the asset may plunge in the immediate future, it should not fall below $17.5K, as he stated.
“We believe the system has lost all leverage. Although bitcoin can slide, I don’t believe it will fall below the $17,500 low that was set for this cycle.
Anthony Scaramucci. Source: CNBC
Scaramucci also argued that bitcoin’s current “fair market value”, as determined by “adoption and wallet size, use cases and growth of wallets,” is around $40,000. Ether should, however, be worth approximately $2,800. SkyBridge Capital’s chief however described volatility in the crypto market as a problem that could hamper the next bull run.
These assets are volatile. The issue is that people should have a view of these assets for at least four to five years.
Crypto is a long-term investment
Scaramucci has been a vocal supporter of digital assets for many years. It’s worth noting that he has advised consumers that bitcoin and altcoins could be a profitable investment strategy.
He reiterated his position last month and admitted that short-term betting on BTC was a mistake. His company suffered significant losses during the crypto winter due to the huge exposure.
“I don’t regret it… But remember, everyone is a long term investor until they experience short-term losses. Therefore, I plan to calculate the bitcoin investment over a period of four years. Scaramucci stated that if bitcoin is held for a continuous four-year period, it’s a sign you’ve made some money.
The executive also advised cryptocurrency investors last year to not exceed 5% of their total savings to the asset class. They could still make solid profits in the event of price growth, and losses would be minimal if valuations fall.
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