The founder of Skybridge Capital stated that the fair market value of bitcoin is approximately $40,000 based on penetration, wallet size, use cases, and wallet growth. The asset management firm also estimates the fair market value of Ethereum at approximately $2,800.
Skybridge Capital
on the fair value of Bitcoin and Ethereum.
Anthony Scaramucci, founder and managing partner of global asset management firm SkyBridge Capital, in an interview with MarketWatch published Tuesday, shared the fair market shared the company’s projections on the value.
He believes the worst of the crypto bear market has passed and Bitcoin has already bottomed out. His comments follow bankruptcy filings by a number of crypto companies, including Celsius Network and Voyager Digital.
“We believe leverage has blown out of the system,” Scaramucci said, while recognizing that BTCcould still slide, he stressed.” I don’t think it will go below the lows reached in this cycle.” “That would be around $17,500.”
The founder of Skybridge Capital went on to say.
According to our fair market value metrics based on adoption, wallet size, use cases, and wallet growth, we believe the current fair market value of bitcoin is around $40,000.
He added that the fair market value of ether is about $2,800.
At the time of this writing, bitcoin is trading at $23,167.48, up 14% over the past 30 days. Ether is trading at $1,650.88, up 43% over the past 30 days.
Scaramucci does not expect bitcoin prices to go straight up due to macroeconomic uncertainty.” Again, these are volatile assets. The issue here would be that people need to have a 4-5 year view on these assets,” he cautioned.
The executive noted.
When cash is added to our fund, we are net buyers of these two assets.
Last month, Skybridge Capitalstopped redeeming its Legion Strategies Fundafter a sharp drop in stocks and cryptocurrencies. About 20% of the fund was in private investments and about 18% in crypto-related investments, which includedBTC, which he detailed as private investments in digital asset companies like BTCand crypto exchange FTX.
Scaramucci confirmed that withdrawals were still halted, adding that the move was necessary to maintain the fund’s composition after investment bank Morgan Stanley issued a sell recommendation to the fund.
“We don’t want individual investors to be too expensive,” the SkyBridge founder stressed.” We can’t let them all out now until we have the right equity and balance in the fund.” He revealed that the fund is currently selling some of its private investments, stating:” Once we get liquidity from those investments, we will then let out those who want to get out.”
Scaramucci has previously stated that he expects the price of bitcoin to reach $100,000 this year and $500,000 long-term.” If you zoom out and look at the long-term chart and try to look at the hiring story, could bitcoin reach $500,000 a coin? I believe it will,” he said in March; in June, he advised investors to “buy quality, unleverage, and be disciplined.” He noted that many coins would be wiped out.
Commenting on the U.S. economy, the SkyBridge executive said, “I think the second half of the year will surprise people because consumption is already slowing.” He opined.
People have a tremendous amount of savings, so there will be a shallow recession but not a deep one. And there are more jobs than people looking for work.
Image credits: Shutterstock, Pixabay, Wiki Commons