The founder of Skybridge Capital says that the fair market value of bitcoin is around $40,000 based on adoption, wallet size, use cases and wallet development. The asset management firm estimated the fair market value of Ethereum at around $2,800.
Skybridge Capital on Fair Prices for Bitcoin and Ethereum
Anthony Scaramucci, founder and managing partner of global asset management firm Skybridge Capital, shared his firm’s predictions on the fair market values of bitcoin (BTC) and ether (ETH) in an interview with MarketWatch published on Tuesday.
He believes that the worst of the crypto bear market is over and bitcoin is already down. His comments followed bankruptcy filings by several crypto firms including Celsius Network and Voyager Digital.
“We believe that leverage has been blown out of the system,” Scaramucci said. While acknowledging that BTC could still fall, he emphasized: “I don’t think it is going to go down for this cycle at least, which would be around $17,500.”
The Skybridge Capital founder further shared:
Based on our fair market value metrics based on adoption, wallet size, use cases, wallet growth, we think the fair market value of bitcoin right now is around $40,000.
He added that the fair market value of Ether is around $2,800.
At the time of writing, bitcoin is trading at $23,167.48, up 14% over the past 30 days. Ether is trading at $1,650.88, up 43% over the past 30 days.
Due to macroeconomic uncertainties, Scaramucci does not expect the price of bitcoin to rise directly. “Again, these are volatile assets. I think the issue here is that people should take a four to five-year view of these assets,” he cautioned.
The executive noted:
We are a net buyer on margin, as the incremental cash comes into our fund, we are a net buyer of those two assets, because we think they are fundamentally undervalued and are technically oversold.
Last month, Skybridge Capital suspended redemptions in its Legion Strategies fund following a sharp drop in stocks and cryptocurrencies. About 20% of the fund was in private investments and about 18% in crypto-related investments, including private investments in digital asset firms such as BTC and crypto exchange FTX, he elaborated.
Scaramucci confirmed that withdrawals are still on hold, adding that the move was necessary to keep the fund’s structure intact as investment bank Morgan Stanley recommended a sale on the fund.
“I can’t push private investment too much,” the Skybridge founder insisted. “Until I have the proper fairness and balance in the fund, I can’t let everyone out in this moment.” He disclosed that the fund is currently selling off some of its private investments, noting: “Once we get liquidated on those investments, we’ll drop whatever we want to get out.”
Scaramucci has been saying for a long time that he expects the bitcoin price to reach $100K this year and $500K in the long term. “If you are willing to zoom out and look at the longer-term charts and see the adoption story, can bitcoin get a half-million dollar coin? I believe it will,” he said in March. In June, he advised investors to “buy quality and be unlearned and be disciplined.” He said a lot of coins would be wiped out.
Commenting on the US economy, the Skybridge executive said, “I think the second half of the year is going to surprise people because there is already a slowdown in consumption.” They said:
There is likely to be a shallow, but not deep recession as people have a lot of savings. And there are more jobs available than the people who are looking for them.
What do you think about Skybridge Capital’s predictions? Let us know in the comments section below.
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