Bitcoin has already descended into this cycle, says Anthony Scaramucci

The founder of SkyBridge Capital – Anthony Scaramucci – does not expect the valuation of bitcoin to fall below the price of $17,500 recorded in June. He also argued that the “fair value” of the asset should be $40,000, or nearly double the current level.

However, the executive believes that the rise in the price of BTC will not happen overnight due to the economic turmoil prevailing in the world. Hence, it may take up to five years for the leading cryptocurrency to get back on its feet.

“Fair value” BTC $40,000, ETH – $2,800

It’s safe to say that bitcoin has been in a knockdown state for the past few months considering its impressive performance last year. In fact, its current valuation of $23,500 is about 66% less than its all-time high of nearly $70,000 recorded in November 2021. Additionally, sometime in June, its price dropped to $17,500, causing investor panic and uncertainty .

According to Anthony Scaramucci, however, the worst of the bear market is over. The asset may continue to sink in the near future, but it should not fall below the $17.5 thousand level, he claimed:

“We believe leverage has been blown out of the system. It is possible that bitcoin will go down, but I don’t think it will fall below the low reached for this cycle, which should be around $17,500.”

Scaramucci further argued that based on “adoption, wallet size, use cases and the growth of wallets,” the “fair market value” of bitcoin right now is around $40,000. Ether, on the other hand, should be worth around $2,800. However, the head of SkyBridge Capital described the volatility of the crypto market as an obstacle that could block the next upside:

“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.”

Crypto is a long-term investment

Scaramucci has been an outspoken supporter of the digital asset industry for years. It’s worth noting, however, that in many of his appearances, he warned consumers to look at bitcoin and altcoins as an investment strategy that could bring them profits in the long run.

Last month, he reiterated his position, admitting that betting on BTC in the short term was wrong. As a result of the massive exposure, his company lost a significant amount of funds during the crypto winter.

“I don’t regret it… For me, the short term is wrong, but remember. everyone is a long-term investor until they have short-term losses. So I want to measure bitcoin investment over four years. “I think if you’ve held bitcoin for a four-year rolling cycle, you’ve made money,” Scaramucci said at the time.

Last year, the executive gave another piece of advice to cryptocurrency investors, advising them to allocate no more than 5% of their total savings to the asset class. Thus, they could enjoy steady gains if prices expand, while losses will be insignificant if valuation heads south.