Anthony Scaramucci, the founder and managing partner of Skybridge Capital, advised crypto investors to see through the current environment. He believes it’s all about staying patient and staying long term.
Scaramucci, in an interview with CNBC, said several recent developments in the crypto space could spark a lot more commercial activity. He gave the example of Lightning Network, the two-layer payment protocol layered on top of Bitcoin, BlackRock’s collaboration with Coinbase, and the establishment of a Bitcoin private trust fund as positive signs for the future.
The hedge fund manager highlighted CEO Larry Fink recording institutional demand for digital assets. Scaramucci said that he wouldn’t be setting up those products and wouldn’t be teaming up with Coinbase. He pointed out that there are only 21 million Bitcoins out there, and investors have a demand shock with very little supply. The executive also highlighted the anticipated Ethereum Merge which is scheduled for next month. He said it will change the network’s consensus mechanism to proof-of-stake (PoS). And this could affect the market price for the second most favored cryptocurrency.
Scaramucci believes traders are purchasing Ethereum based on the potential positives the Merge could bring, but then they could also turn around and sell it just as fast. He cautioned people not to do that as these are great long-term investments. Furthermore, the executive has seen a resurgence of investor interest. This is attributed to better-than-expected inflation numbers in July. Scaramucci said the global economy can return to its strong 2019 Q4 status within 6 to 12 months. He has a positive outlook for the crypto market and warns investors to take care with knee-jerk reactions to bad news and emotion-based trading. Scaramucci thinks Bitcoin could see an unprecedented upswing over the next six years.