Bitcoin ‘has already bottomed and its fair value is $40k’, SkyBridge’s Scarramucci suggests

After a market-wide sell-off that engulfed it in recent months, the cryptocurrency sector is finally catching its breath, driven by its major assets like Bitcoin (BTC), leading some crypto enthusiasts to offer their two cents on the flagship digital asset’s price movements.

One of them is Anthony Scaramucci, the founder and managing partner at investment management company SkyBridge Capital, who believes that the worst of the crypto bear market is now over, as he told MarketWatch’s Frances Yue in an interview published on August 2.

SkyBridge’s founder and managing partner voiced his opinion that it was possible for Bitcoin to decline but “I don’t think it’s going below the low that was reached for this cycle, which would be at around $17,500,” he said, further adding that:

“According to our fair market value metrics based on adoption, wallet size, use cases, growth of wallets, we think the fair market value for Bitcoin right now is about $40,000.”

Scaramucci’s believes leverage has been ‘blown out’

With the widely publicized collapse of the Terra (LUNA) ecosystem, the cryptocurrency-focused lender Celsius, brokerage firm Voyager Digital, and hedge fund Three Arrows Capital (3AC), Scaramucci stressed that:

“We believe that the leverage has been blown out of the system.” 

However, he doesn’t think the price of the maiden cryptocurrency would immediately soar in the nearest future, taking into account the situation at the macroeconomic level and the fact that “these are volatile assets”, therefore “people need to take a four to five years view of these assets.”

Meanwhile, Bitcoin is trading at $23,343, which is an improvement of 2.19% on the day, as well as an increase of 9.52% across the previous week, according to data retrieved from CoinMarketCap on August 3.

Crypto exposure problems for SkyBridge

Elsewhere, Finbold reported that SkyBridge Capital had temporarily suspended withdrawals from Legion Strategies – one of its funds that had exposure to crypto assets – due to the fall in the prices of the stocks and crypto owned by the fund.

According to the report, about 20% of this fund was in private investments, and the management company decided to keep its structure unchanged after a sell recommendation by Morgan Stanley (NYSE: MS).

Commenting on this development, Scaramucci said that:

“We have to be fiduciary. All of our clients and I can’t have the private investments go too high. (…) I can’t let everybody out right at this second until I can have appropriate fairness and balance in the fund.”

After liquidating some of its private investments, Scaramucci explained that “we will then let whoever wants to get out.”

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