Anthony Scaramucci, founder of Skybridge Capital, a $3.5 billion asset management firm, has some advice.
Scaramucci on How to Survive Crypto Bear Market
Skybridge Capital Founder Anthony Scaramucci with CNBC on Monday interview, shared his outlook for bitcoin and advice on how to survive a crypto market sell-off.
“We are in a bloodbath,” he said.” This is my eighth bear market. I expect to survive this one as well.” Scaramucci opined.
I am encouraged by the fact that bitcoin is now over 50% of the overall crypto market cap, which is another sign that there is a flight to quality out there.
“Of course, Celsius is putting pressure on it – the same way the LUNA Terra situation put pressure on it about six weeks ago,” he continued.
Crypto lending platform Celsius announced Sunday night that it had frozen withdrawals while cryptocurrency terra (LUNA) and stablecoin terrausd (UST) collapsed in early May.
Skybridge executives proceeded to give some advice to investors to help them survive the crypto bear market. He began by recommending that people “maintain long-term investment discipline while remaining unleveraged.”
Scaramucci explained.” Everyone has a long-term perspective until they have short-term losses … Then they start lighting their hair on fire and run around in circles.” He stated.
I just caution people to buy quality, be unlevered, and be disciplined.
He added that investors “should be aware that bear markets happen,” and that “if you look at the last 120 years, it probably happens every five years.” He notes. If you stay disciplined during those periods, you can get very wealthy.” I think that’s the message to investors.
Scaramucci was specifically asked if being disciplined means buying in a down market like what is happening on Monday.
I certainly think so. With the incremental cash coming into our fund, we bought more Bitcoin and Ethereum.
He added and noted that his company has a private stake in the cryptocurrency exchange FTX.” FTX is doing very well. It is gaining market share and it is a profitable company.”
The executive opined that.” As a matter of fact, people will look back on this debacle and say they wish they had new cash to buy that thing.”
Regarding the collapse of some coins, such as LUNA and UST, Scaramucci noted that ” There are over 8,000 coins out there… Many of these projects will trade to zero. There will be 5 to 15 coins that will be future use cases,” he said. He emphasized.
Indeed, many of these coins are likely to be wiped out.
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