October 2, 2022

SkyBridge Capital founder Anthony Scaramucci says Bitcoin is well below its true fair value and the bottom is likely already in for BTC.

In a new interview with MarketWatch, the veteran hedge fund manager says his firm’s metrics put BTC’s value at around $40,000.

BTC is changing hands for $23,422 at the time of writing, about 70% below what Scaramucci says is its fair value.

“We believe leverage has been blown out of the system. I don’t think it will go below the low reached for this cycle, which would be around $17,500.

According to fair market value metrics based on adoption, wallet size, use cases, growth of wallets, we believe the fair market value for bitcoin right now is around $40,000.

Scaramucci says he believes leading smart contract platform Ethereum (ETH) is also undervalued, with its fair value hovering around $2,800. He also says that technical indicators suggest that BTC and ETH are very oversold.

However, it does not necessarily predict an imminent BTC and ETH boom anytime soon due to macroeconomic headwinds.

“We on the margin are net buyers as additional cash flows into our funds, we are net buyers of these two assets because we believe they are fundamentally undervalued and technically oversold.

Again, these are volatile assets. I guess the point here is that people need to take a four- to five-year view of these assets.”

The hedge fund CEO adds that he expects the recent inflation affecting markets to subside by the end of the year.

“I think the second half of the year will surprise people because there is already a slowdown in consumption. There will probably be a shallow but not deep recession because people have huge savings. And there are more jobs available than people looking for them.”

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Disclaimer: The views expressed in The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrencies or digital assets. Please note that your transfers and transactions are at your own risk and that any losses are your responsibility. The Daily Hodl does not recommend the purchase or sale of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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