On Friday (August 12), former White House Director of Communications Anthony Scaramucci, who is the founder and managing partner of global alternative investment firm SkyBridge Capital, shared his thoughts on the crypto market.
SkyBridge Capital is “an SEC-registered investment adviser and global alternative investment manager that invests in hedge funds, digital assets, private equity, and real estate.”
On 4 January 2021, Skybridge announced “the launch of the SkyBridge Bitcoin Fund LP, which provides mass-affluent investors with an institutional-grade vehicle to gain exposure to Bitcoin.”
The press release went on to say:
“Additionally, on behalf of its flagship funds, SkyBridge initiated a position, valued at approximately $310 million at the time of this release, in funds investing in Bitcoin during November and December 2020.“
According to a report by Cointelegraph published on April 25, SkyBridge Capital “also has money deployed in other hedge funds, late-stage private tech companies and real estate.” SkyBridge has also been trying to get a physical Bitcoin ETF approved by the U.S. SEC.
Anyway, on August 12, Scaramucci spoke to Melissa Lee on CNBC’s “Squawk Box”, and according to a report by The Daily Hodl, here is what he had to say about the current macro environment and the crypto market during this interview:
“You’re getting better-than-expected inflation data… I was just looking at the fourth quarter [of] 2019 – GDP numbers, the inflation and unemployment numbers...
“And if you just stop and think about it, we hit pause, the pandemic created this havoc, we inducted a lot of money into the system that caused some inflation, and obviously you had the supply chain disruption. But you could very well get back to that fourth quarter of 2019, which was a very strong economy, low unemployment, and benign inflation – that’s probably six to 12 months away, and I think the market’s starting to realize that. The crypto market, obviously, it is our belief that most of the leverage is completely out of that system...
“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. Again, we’re up 45% since we last spoke. We did nothing but hold the positions and stick to our discipline. I think that’s the message I’m trying to send to investors… I tell people, ‘Just relax. See through this.’ We see a pretty optimistic scenario for Bitcoin, Ethereum, Solana and Algorand over the next 12 to 24 months.“
As for his Bitcoin price prediction, Scaramucci expects the $BTC price to hit $300,000 within the next six years.
On May 12, Scaramucci talked about the crypto market in the aftermath of the $LUNA / $UST debacle during an interview with Scott Wapner, host of CNBC’s “Closing Bell: Overtime”.
“In March of 2020, Scott, when Bitcoin got down to between four and six thousand, there was 70 billion dollars lost, and so just to get the magnitude of what we’re talking about now, it’s an 800 billion dollar correction. But I think the good news about that frankly is because this is decentralised, you don’t have any systemic risk.
“Secretary Yellen more or less said that this morning, and I just want you to imagine that kind of hit to the banking community, how dramatic that would be, and what the Federal Reserve would need to do. So it’s just an example of decentralisation being what I would describe as less fragile than the core system…
“Of course, we can draw the historical context back to March of 2000 when we saw the Nasdaq go from something like 5,000 and change down to 2,300. And so, if you had leverage in this situation, then you likely incurred a permanent capital loss, but if you didn’t have leverage in this situation, there were some anomalies that took place like the Terra debacle, where I think these assets are at distress level prices, they’re technically oversold.
“And so, we haven’t sold one position, frankly… Still, our core fund has about 18% exposure to Bitcoin and Ethereum. And I’ll just point out to people if you bought this stuff when we did back in October of 2020, these coins, you know, were trading $18,000 or so for Bitcoin, $700 or so for Ethereum.
“If you take a long-term perspective and sort of zoom out, you could do very very well in the cryptocurrency markets. Listen, everybody’s a short-term investor when you have losses like this. You know, that cliche I’m a long-term investor until I have short-term losses.
“I understand the panic in the markets, but what I would encourage people to think about is the two core protocols, Bitcoin and Ethereum. zoom out, take a look at what they’ve done over a five-year period of time, and recognise that there was a flaw in the Terra ($LUNA) mechanisms.
“Many people spoke out against this. SkyBridge never owned any of those tokens. And many people spoke out against that, and of course, when that crumbled, you saw massive selling pressure.
“So, I think this thing is technically oversold. We’re long-term optimistic, and unfortunately, for me, Scott, I’m getting old. This is my eighth bear market cycle, and I just want to encourage younger people that are tuning in — perhaps, it’s their first or second their market cycle — to see through the carnage and recognise that there’s an extraordinary opportunity ahead like there was in March of 2000.“
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