One among them is Anthony Scaramucci, the founder and managing partner of the wealth management company, SkyBridge Capital. Scaramucci trusts that the cryptocurrency market has seen its nadir and an uptrend has begun. He shared his view while having a talk with Frances Yue of MarketWatch.
As per SkyBridge’s founder, Bitcoin could decline, but certainly not to the nadir it reached in the recent downtrend i.e., $17,500. He further stated that the fair market value for Bitcoin is roughly $40,000 under the current circumstances. The assessment was made based on metrics such as wallet size, adoption, wallet growth rate, and use cases.
With respect to the downfall of the Terra (LUNA) network and several crypto-focused firms such as Celsius (lender), hedge fund Three Arrows Capital (3AC) Voyager Digital (brokerage firm), Scaramucci opined that too much leverage had resulted in the collapse.
Nevertheless, he does not believe that the price of the numero uno crypto in terms of the market cap will surge rapidly in the near term due to global macroeconomic issues and volatility of the asset. Scaramucci suggests investors have a long-term (four to five years) assessment of crypto assets.
While preparing this report, Bitcoin was trading at $23,344, an increase of 2.20% in the past 24 hours and 10% in the last week, as per data published by CoinGecko.com.
Notably, Finbold has reported that SkyBridge Capital has temporarily stopped processing withdrawal requests made to Legion Strategies, a fund with cryptocurrency exposure, primarily due to the steep decline in the price of both stocks and cryptos held by the fund.
As per the report, roughly 20% of the capital in the fund is in private investments. Additionally, the wealth management firm has chosen to retain its portfolio unaltered after sell advice by Morgan Stanley (NYSE: MS).
Regarding the reports, Scaramucci clarified that:
“We must act in good faith. All of our customers and I cannot afford for the private investments to become too large. (…) I can’t allow everyone go right now until I have adequate fairness and equilibrium in the fund.”
Scaramucci further stated that withdrawals will be allowed after the liquidation of a portion of the funds’ private investments.