Scaramucci Highlights Key Factors Why The Crypto Market Will Soon Recover

Scaramucci Highlights Key Factors Why The Crypto Market Will Soon Recover

Skybridge Capital Founder and Managing Partner Anthony Scaramucci has an optimistic view of the future of crypto markets, advising investors to “see through the current environment” and “remain patient and long-term.”

In an interview with CNBC, the hedge fund manager shared his belief that several recent developments in the crypto arena could trigger “a lot more trading activity.”

In particular, he pointed to the ever-improving Lightning Network, the two-layered payment protocol overlaying Bitcoin (BTC), BlackRock’s partnership with Coinbase, and their subsequent creation of a BTC Private Trust Fund as positive signs for the future.

Finally, CEO Larry Fink sees institutional demand for digital assets. Otherwise, he wouldn’t be setting up these products and he wouldn’t be teaming up with Coinbase.

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

Ethereum merger on the horizon

Scaramucci cited the upcoming Ethereum (ETH) merger scheduled for September 15, which will change the network’s consensus mechanism to proof-of-stake, as an event that could affect the market price of the second-largest cryptocurrency.

In his view, traders are buying the cryptocurrency based on the potential benefits the merger could bring, but he also notes that they could turn around and sell off just as quickly.

“A lot of traders are probably buying this rumour; they will probably sell on the news of this merger,” he said, adding that “I would advise people against doing this; they are great long-term investments,” he said. he added.

Slow but steady recovery over the last month

Despite the ongoing crypto bear market, many top cryptocurrencies have seen modest gains. BTC is up 20% in the past month to stand at $24,959 at the time of writing, while the price of ETH has jumped 62% to $1999, according to data from

Scaramucci noted that he has seen renewed interest from investors and, with better than expected inflation figures in July, he believes the global economy can return to its strong status of the fourth quarter of 2019 within the next six months. 12 months.

Overall, Scaramucci has a positive outlook for the crypto market and warns investors to beware of knee-jerk reactions to bad news and emotion-based trading.

His company believes that BTC could experience an unprecedented recovery over the next six years.

“If we’re right, if BTC goes to $300,000 a coin, it doesn’t matter if you buy it at $20,000, $60,000; the future is ahead of us; it’s happening sooner than I thought” , did he declare.

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

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

Scaramucci mentioned that his firm has a position in ETH competitor Algorand (ALGO), but by far their two largest positions are still in BTC and ETH.