Scaramucci emphasized the factors that will cause the cryptocurrency market to rebound shortly

By: Henry Felix

Scaramucci emphasized the factors that will cause the cryptocurrency market to rebound shortly

August 16, 2022 1:44 AM

Anthony Scaramucci has reasons to be hopeful about the future, including significant corporate alliances, soaring cryptocurrency values, better macro indicators like declining inflation, and ultimately, the Merge.

 

Anthony Scaramucci, the founder and managing partner of Skybridge Capital, has a positive outlook on the future of the cryptocurrency markets and encourages investors to "see beyond the current environment" and "remain patient and stay long term."

 

The hedge fund manager expressed his opinion that "a lot more commercial activity" would result from recent advances in the cryptocurrency field.

 

He singled out as promising signs for the future the two-layer payment system built on top of Bitcoin, the constantly improving Lighting Network, the collaboration between BlackRock and Coinbase, and their subsequent creation of a BTC private Trust Fund. "Finally, CEO Larry Fink has noticed a need from institutions for digital assets. In any other case, he wouldn't be launching those goods and collaborating with Coinbase."

 

There are only 21 million Bitcoins in existence, and with such a little supply, there will be a demand shock, he continued.

 

An imminent merger of Ethereum

 

Scaramucci noted The Merge, which is scheduled for September 15, as an event that is anticipated to have a beneficial impact on the market price of the second-largest cryptocurrency. The Merge will result in a transition in the network's consensus method to PoS (proof-of-stake).

 

According to him, traders are purchasing cryptocurrencies because they believe the merger will have some favorable effects, but they might also sell them just as quickly as they were bought.

 

I would advise people not to do that; these are wonderful long-term investments, he added. "A lot of traders are definitely buying that rumor; they will probably sell on the news of that merger," he said.

 

Last month, recovery was steady but gradual

 

Despite the current bear market, many of the leading cryptocurrencies have seen tiny gains. Ethereum's price has increased significantly by 62% to $1,999, while Bitcoin's price has increased 20% over the past month to sit at $24,151 at the time of writing.

 

Scaramucci also mentioned that he has observed investors' interest rekindled, and because July's inflation data was stronger, he thinks the world economy can rebound to its robust 2010 Fourth Quarter position in six to twelve months.

 

Scaramucci advises investors to use prudence when trading based on emotions and to avoid having emotional reactions to negative news, which is in keeping with his confidence for the cryptocurrency markets.

 

His company predicts that Bitcoin might experience an incredible upswing over the next six years.

 

"The future is upon us; it's happening sooner than I imagined," he added. "If we are right, if BTC gets to $300,000 USD a coin, it will not matter if you got it at $20,000 USD, $60,000 USD." "I don't want us to start herking and jerking the portfolio based on emotion," he said. "If you're out of the market for the ten best days, you've lowered your return from a 7.5% return to a 2% return."

 

We envision a fairly hopeful scenario for BTC, ETH, ALGO, and Solana (SOL) over the next 12 to 24 months, the investor said. "I think that's the message I'm trying to deliver to investors; just relax," he added.

 

Scaramucci added that although his company has a stake in Algorand (ALGO), a rival to ETH, their two most significant holdings are presently BTC and ETH.