The founder of Skybridge Capital says the fair market value of bitcoin is around $40,000 based on adoption, wallet size, use cases and wallet growth. The asset management company also estimated the fair market value of Ethereum at around $2,800.
Skybridge Capital on the fair values of 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, released on Tuesday.
He believes the worst of the crypto bear market is over and bitcoin has already bottomed out. His comments followed the bankruptcy filings of a number of crypto firms, including Celsius Network and Voyager Digital.
“We think the leverage has been blown out of the system,” Scaramucci said. While acknowledging that BTC could slide further, he pointed out, “I don’t think it will go below the low reached for this cycle, which would be around $17,500.”
The founder of Skybridge Capital further shared:
Based on our fair market value metrics based on adoption, wallet size, use cases, wallet growth, we believe the fair market value of bitcoin is currently around $40,000.
He added that the fair market value of ether is around $2,800.
As of this writing, bitcoin is trading at $23,167.48, up 14% in the last 30 days. Ether is trading at $1,650.88, up 43% in the past 30 days.
Scaramucci does not expect bitcoin price to rise directly due to macroeconomic uncertainties. “Again, these are volatile assets. I guess what’s at issue here is that people need to have a four to five year view of these assets,” he cautioned.
The executive noted:
We are, at the margin, net buyers, as additional liquidity enters our funds, we are net buyers of these two assets, as we believe they are fundamentally undervalued and technically oversold.
Last month, Skybridge Capital suspended redemptions from its Legion Strategies fund after sharp declines in stocks and cryptocurrencies. About 20% of the fund was in private investments and about 18% in crypto-related investments, including BTC and private investments in digital asset companies such as crypto exchange FTX, he said. detailed.
Scaramucci confirmed that withdrawals are still on hold, adding that the move was necessary to keep the fund’s composition intact after investment bank Morgan Stanley issued a sell recommendation on the fund.
“I can’t push private investment too high,” said Skybridge’s founder. “I can’t let everyone out right now until I can have proper equity and balance in the fund.” He revealed that the fund is currently selling some of its private investments, noting, “Once we get cash on those investments, then we’ll let whoever wants out.”
Scaramucci has long said that he expects bitcoin’s price to hit $100,000 this year and $500,000 in the long term. “If you’re willing to zoom out and look at the long-term chart and look at the adoption story, could bitcoin hit half a million dollars a coin? I believe it will,” he said in March. In June, he advised investors to “buy quality, be unleveraged and stay disciplined.” He noted that a lot of coins will be erased.
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.” He issued the following opinion:
There will probably be a shallow recession, but not a deep one, because people have huge savings. And there are more jobs available than people looking for them.
What do you think of Skybridge Capital’s predictions? Let us know in the comments section below.
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