Skybridge Capital founder claims bitcoin’s fair value is approximately $40,000, based on the adoption rate, wallet size, use case growth, and growth in wallets. According to the asset management company, ethereum’s fair value is estimated at $2,800.
Skybridge Capital’s founder and managing partner Anthony Scaramucci shared his predictions about the fair market value of bitcoin ( TTC) as well as ether ( ETH_) in an interview published by Marketwatch on Tuesday.
He believes the worst of the crypto bear markets is over and that bitcoin has bottomed. He made these comments after bankruptcy filings of a number crypto firms, including Celsius Network as well as Voyager Digital.
Scaramucci stated that “we believe that the leverage is gone from the system.” Although BTC may still slide, Scaramucci stressed that it is not going below the $17,500 low for this cycle.
Skybridge Capital founder shared the following:
Based on the adoption, wallet size and use cases as well as growth of wallets, our fair market valuation metrics, we believe that bitcoin’s fair market value right now is approximately $40,000.
He also stated that the fair market value of ether is approximately $2,800
Bitcoin is currently trading at $23,167.48 as of the writing. This represents an increase of 14% over the previous 30 days. Ether trades at $1650.88, an increase of 43% over the past 30 days.
Scaramucci doesn’t expect bitcoin prices to rise due to macroeconomic uncertainties. These are volatile assets. He said that people should have a view of these assets for at least four to five years.
According to the executive,
We are net buyers on the margin. As incremental cash is added to our funds, we’re net purchasers of these two assets. This is because we believe they’re technically oversold and fundamentally undervalued.
Skybridge Capital stopped redemptions from its Legion Strategies fund last month due to sharp declines in stocks or cryptocurrencies. He explained that 20% of the fund was private investments while 18% was crypto-related investments including Bitcoin and private investment in digital asset firms like crypto exchange FTX.
Scaramucci confirmed that withdrawals have been halted and said that this was necessary in order to preserve the fund’s composition after Morgan Stanley, an investment bank, recommended that it be sold.
Skybridge founder said, “I cannot have the private investments get too high.” “I cannot let everyone out at this moment until I can have adequate fairness and balance within the fund,” he stated. He also revealed that some private investments are currently being sold by the Skybridge founder, adding: “Once those investments become liquid, we will let anyone who wants to get out.”
Scaramucci has stated for years that he expects the bitcoin price to reach $100K this fiscal year and $500K over the long-term. If you zoom in and take a look at the adoption story and the long-term chart, can bitcoin reach half a million dollars per coin? He stated that he believed it would. He advised investors in June to “buy quality and not be levied, and remain disciplined.” He pointed out that many coins would be lost.
Skybridge’s executive commented on the U.S. economic situation and stated, “I think people will be surprised by the second half of this year because there has been a slowdown with consumption.”
Because people have so much savings, there will be a temporary but not severe recession. There are many more jobs than people searching for them.