The Fair Values of Bitcoin and Ethereum, according to Skybridge Capital
In an interview with Marketwatch that was published on Tuesday, Anthony Scaramucci, the founder and managing partner of the international asset management company Skybridge Capital, provided his company’s projections on the fair market prices of bitcoin (BTC) and ether (ETH).
He thinks that bitcoin has already reached its bottom and that the worst of the cryptocurrency bear market is over. His remarks came after several cryptocurrency companies, including Celsius Network and Voyager Digital, filed for bankruptcy. Scaramucci stated, “We feel that the leverage has been blown out of the system. He stressed that despite the possibility that BTC might still decline: “I don’t think it’s going below the bottom that was established for this cycle, which would be around roughly $17,500.”
The founder of Skybridge Capital added the following:
According to our fair market value metrics based on adoption, wallet size, use cases, growth of wallets, we think the fair market value for bitcoin right now is about $40,000.
He also said that the fair market value of ether is somewhere around $2,800.
At the time of writing, the price of one bitcoin is $23,167.48, up 14% over the last 30 days. With a price of $1,650.88, ether has increased by 43% during the past 30 days.
Due to macroeconomic uncertainty, Scaramucci does not anticipate a direct increase in the price of bitcoin.
“Once more, they are risky assets. I suppose the issue here is that individuals need to examine these assets over the course of four to five years, he advised.
The manager observed:
We on the margin are net buyers, as incremental cash comes into our funds we’re net buyers of those two assets, because we think that they’re fundamentally undervalued and technically oversold.
Skybridge Capital stopped accepting redemptions in its Legion Strategies fund last month as a result of precipitous falls in equities and cryptocurrency prices. According to him, the fund had roughly 20% private investments and about 18% crypto-related investments, including BTC and private investments in companies that deal in digital assets like the cryptocurrency exchange FTX.
Withdrawals are still being delayed, according to Scaramucci, who added that the action was required to maintain the composition of the fund after investment bank Morgan Stanley issued a sell rating on it.
The creator of Skybridge said, “I can’t have the private investments get too high.” “Until I can have adequate justice and balance in the fund, I can’t let everyone out right now.” He acknowledged that the fund is now liquidating some of its private holdings and said, “Once we get out of those holdings, we will then let anybody wants to get out.”
Scaramucci has long predicted that the price of bitcoin will eventually hit $100,000 this year and $500,000. Could bitcoin reach a price of $500,000 per coin if you’re prepared to zoom out and look at the long-term chart and adoption story?
I think so,” he declared in March. He urged investors to “purchase quality, be unlevered, and maintain discipline” in June. He pointed out that many coins will be lost.
The Skybridge CEO commented on the American economy, saying, “I think the second half of the year will surprise people since there’s already a slowdown in consumption.” He stated:
There will likely be a shallow, but not a deep recession because people have a tremendous amount of savings. And there are more jobs available than people looking for them.