The founder of Skybridge Capital says that the fair market value of bitcoin is around $40,000 based on adoption, wallet size, use cases, and wallet growth. The asset management firm also estimated the fair market value of Ethereum at $2,800.
Skybridge Capital on the Fair Values of Bitcoin and Ethereum
Anthony Scaramucci, founder and managing partner of global asset manager Skybridge Capital, shared his company’s predictions for the fair market values of bitcoin (BTC) and ether (ETH) in an interview with Marketwatch, published Tuesday.
He believes that the worst of the crypto bear market is over and that Bitcoin has already bottomed. His comments came in the wake of bankruptcy filings by a number of crypto companies, including Celsius Network and Voyager Digital.
“We think the leverage has faded from the system,” Scaramucci said. Realizing that BTC could still go lower, he affirmed: “I don’t think it will fall below the low that has been reached for this cycle, which would be around $17,500.”
As the founder of Skybridge Capital shared:
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 $40K.
He added that the fair market value of ether is about $2,800.
At the time of writing, Bitcoin was trading at $23,167.48, a 14% increase in the past 30 days. Ether is trading at $1,650.88, up 43% in the last 30 days.
Scaramucci does not expect the Bitcoin price to rise directly due to the macroeconomic uncertainty. Again, these are volatile assets. I think the problem here is that people need to look at these assets four to five years.
The CEO noted:
We are on the margins net buyers, where the extra cash comes into our bins, we are net buyers of these two assets, because we believe they are both undervalued and technically oversold.
Last month, Skybridge Capital suspended redemptions in its Legion Strategies fund after sharp declines in stocks and cryptocurrencies. He explained that about 20% of the fund was in private investments and about 18% was in crypto-related investments, including BTC, and private investments in digital asset companies such as cryptocurrency exchange FTX.
Scaramucci confirmed that withdrawals are still on hold, adding that the move was necessary to keep the fund’s composition intact after investment bank Morgan Stanley made a sell recommendation for the fund.
“I can’t make private investments too high,” the Skybridge founder emphasized. “I can’t let everyone out at this moment so I can get proper justice and balance in the box.” He revealed that the fund is currently selling some of its own investments, noting: “As soon as we obtain liquidity on those investments, we will allow those who want to exit.”
Scaramucci has always said that he expects Bitcoin to reach $100,000 this year and $500,000 in the long term. “If you’re willing to zoom out and look at the long-term chart and look at the adoption story, could bitcoin hit half a million dollars? He said last March. In June, he advised investors to “buy quality and stay away from tyranny,” he said last March. , and stay disciplined.” He noted that a lot of coins would be eliminated.
Commenting on the US economy, the Skybridge CEO said, “I think the second half of the year will surprise people because there is already a slowdown in consumption.” He said:
There will probably be a shallow recession, but not deep, because people have a huge amount of savings. There are more jobs available than people who are looking for them.
What do you think of Skybridge Capital’s predictions? Let us know in the comments section below.
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