SkyBridge Capital founder Anthony Scaramucci is telling crypto investors to avoid knee-jerk reactions as he predicts a huge price tag for Bitcoin (BTC) in the coming years.
In a new interview with CNBC, the hedge fund veteran warns investors to “look through the current environment” and resist trading on emotion.
“You’re getting better than expected inflation data … I just looked at the fourth quarter [of] 2019 – GDP figures, inflation and unemployment figures.
And if you just stop and think about it, we press pause, the pandemic created this chaos, we introduced a lot of money into the system which caused some inflation, and obviously you had supply chain disruption. But you may well get back to the fourth quarter of 2019, which was a very strong economy, low unemployment and good inflation — that’s probably six to 12 months away, and I think the market is starting to realize that. The crypto market is obviously our belief that most of the leverage is completely out of that system.”
Scaramucci notes that his firm has its largest positions in Bitcoin and Ethereum (ETH), plus significant positions in ETH rivals Algorand (ALGO) and Solana (SOL).
“We think the improved Lightning network, the increase in applications and ease of transactions on Bitcoin – you’re going to see a lot more commercial activity there. And of course you have The Merge that’s coming with Ethereum, which is going to lower the transaction fees on that network. A lot of traders are probably buying that reputation.”
According to Scaramucci, his firm predicts a Bitcoin price of $300,000 in the next six years.
“If you’re out of the market for the top 10 days, you’ve reduced your return from 7.5% return to 2% return… I don’t want us to start moving and moving the portfolio based on emotion. Again, we’re up 45% since we last spoke. We did nothing but hold our positions and stick to our discipline. I think that’s the message I’m trying to send to investors…
I tell people, “Just relax. Look through this.’ We see a fairly optimistic scenario for Bitcoin, Ethereum, Solana and Algorand over the next 12 to 24 months.
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