According to the founder of Skybridge Capital, the fair market value of bitcoin is around $40,000, considering adoption, wallet sizes, use cases and wallet growth. The asset management company also estimated the fair market value of Ethereum at around $2,800.
Skybridge Capital on righteous bitcoin and ethereum values
Anthony Scaramucci, founder and managing partner of asset management firm Skybridge Capital, shared his firm’s predictions on the fair market values of bitcoin and ethereum in an interview with Marketwatch, published Tuesday.
He believes that the worst of the cryptocurrency bear market is over and bitcoin has already bottomed out. His comments follow the bankruptcy filings of a number of cryptocurrency companies, including Celsius Network and Voyager Digital.
“We think leverage is gone from the system“said Anthony Scaramucci. While acknowledging that Bitcoin could slide further, he pointed out: “I don’t think it will go below the low reached for this cycle, which would be around $17,500.”
The founder of Skybridge Capital also shared:
Based on our fair market value metrics based on adoption, wallet sizes, use cases, wallet growth, we believe the fair market value of bitcoin is currently around $40,000.
He added that the fair market value of ether is around $2,800.
Bitcoin is trading at $23,167.48, up 14% in the last 30 days. Ethereum is trading at $1,650.88, up 43% in the last 30 days.
Anthony Scaramucci does not expect bitcoin price to rise directly due to macroeconomic uncertainties. “Again, these are volatile assets. I think what’s at stake here is that people need to have a four or five year view of these assets“, he warned.
He also noted:
We are net buyers, as additional cash flows into our funds, we are net buyers of these two assets, because we believe they are fundamentally undervalued and technically oversold.
Last month, Skybridge Capital suspended redemptions in its Legion Strategies fund after sharp declines in stocks and cryptocurrencies. Around 20% of the fund was invested in private placements and around 18% in investments related to cryptocurrencies, among others. BTC and private investments in digital asset companies such as cryptocurrency exchange FTX, he detailed.
Anthony 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 issued a sell recommendation on the fund.
“I can’t let private investment go too high“, underlined the founder of Skybridge. “I can’t let everyone out right now until I can have proper equity and balance in the fund“. He revealed that the fund is currently selling some of its private investments, noting: “Once we have obtained liquidity on these investments, we will then let those who want it out.”
Anthony Scaramucci has long said that he expects the price of bitcoin to reach $100K this year and $500K in the long term. “If you’re willing to zoom out and look at the long-term chart and adoption history, could bitcoin hit half a million dollars per coin? I think so“, he said in March. In June, he advised investors “to buy quality, be leverageless and stay disciplined“. He pointed out that many pieces were going to be eliminated.
Commenting on the US economy, the Skybridge executive said: “I think the second half will surprise people because there is already a slowdown in consumption.” He opined:
There will probably be a superficial recession, but not a deep one, because people have a huge amount of savings. And there are more jobs available than people looking for them.