SkyBridge’s Scaramucci Estimates Bitcoin’s Fair Market Value At $40k

By Kevin • August 7, 2022 10:42 pm • Comments

SkyBridge Capital is a global asset management firm and its founder, Anthony Scaramucci, shared that he believed that Bitcoin’s fair market value is at $40k.

This means that the current market price of BTC at $23k is actually below the digital asset’s true value which makes it a buying opportunity for long term investors.

Scaramucci says that he believes that the worst of the crypto bear market has already passed and that the market has essentially bottomed.

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The past bear market served to eliminate all the businesses that were over-leveraged which includes firms like Voyager Digital and Celsius Network.

Bitcoin.com reports:

“We believe that the leverage has been blown out of the system,” Scaramucci said. While recognizing that BTC could still slide, he emphasized: “I don’t think it’s going below the low that was reached for this cycle, which would be at around $17,500.”

The Skybridge Capital founder further shared:

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

He added that ether’s fair market value stands at around $2,800.

At the time of writing, bitcoin is trading at $23,167.48, up 14% in the past 30 days. Ether is trading at $1,650.88, up 43% in the last 30 days.

With that being said, although Scaramucci believes that the market has bottomed out for the most part, he also stated that he doesn’t think that the price of Bitcoin will go straight up.

This is because there are still many uncertain economic issues such as problems like inflation and the overall downtrend of traditional financial markets.

As a result, he recommends investors take a long term view of these crypto assets such as a 4 or 5 year time span.

So far, around 20% of the fund is invested in crypto-related investments which is quite a sizeable amount for the asset management firm.

News.bitcoin.com reports:

Scaramucci has long been saying that he expects the price of bitcoin to reach $100K this year and $500K long-term.

“If you’re willing to zoom out and look at the long-term chart and look at the adoption story, could bitcoin get to half a million dollars a coin? I believe it will,” he said in March.

In June, he advised investors to “buy quality and be unlevered, and stay disciplined.” He noted that a lot of coins will get wiped out.

Commenting on the U.S. economy, the Skybridge executive said, “I think the second half of the year is going to surprise people because there’s already a slowdown in consumption.” He opined:

There will likely be a shallow, but not a deep recession because people have a tremendous amount of savings. And there are more jobs available than people looking for them.

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