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Anthony Scaramucci, founder and managing partner of Skybridge Capital, is optimistic about the future of cryptocurrency markets. He advises investors to "see through the current environment" and "stay patient and stay long term."
In an interview with CNBC, the manager of a hedge fund said that he thought recent changes in the cryptocurrency space could lead to "a lot more business activity."
Specifically, he pointed to the constantly improving Lightning Network, the two-layer payment protocol on top of Bitcoin, BlackRock's partnership with Coinbase, and their subsequent creation of a Bitcoin (BTC) private trust fund as good signs for the future:
“Finally, CEO Larry Fink is seeing institutional demand for digital assets. Otherwise, he wouldn’t be setting up those products, and he wouldn't be teaming up with Coinbase.”
“I just want to remind people that there are only 21 million Bitcoins out there, and you’ll have a demand shock with very little supply,” he added.
Ethereum Merge on the horizon
Scaramucci said that the upcoming Ethereum Merge, which will happen on September 15 and change the network's consensus method to proof-of-stake (PoS), could affect the price of the second largest cryptocurrency on the market.
He thinks that traders are buying the cryptocurrency because they think the merger could bring good things, but he also says that they could just as quickly turn around and sell.
“A lot of traders are probably buying that rumor; they will probably sell on the news of that merger,” he said, adding that “I would caution people not to do that; these are great long term investments,” he added.
Recovery slow but steady over the last month
Even though the crypto bear market is still going on, many of the top cryptocurrencies have shown small gains. According to data from Cointelegraph Markets Pro and TradingView, the price of BTC has gone up 20% in the last month to $24,954, while the price of Ether (ETH) has gone up a huge 62% to $1999.
Scaramucci said he had seen a rise in investor interest, and with better-than-expected inflation numbers in July, he thinks the global economy can get back to being strong in 6 to 12 months.
Overall, Scaramucci is optimistic about the crypto market, but he warns investors not to react too quickly to bad news or trade based on their feelings.
His company thinks that Bitcoin's price could go up like never before in the next six years.
“If we are right, if BTC goes to $300,000 USD a coin, it will not matter if you bought it at $20,000 USD, $60,000 USD; the future is upon us; it’s happening sooner than I thought,” he said:
“If you’re out of the market for the ten best days, you’ve reduced your return from a 7.5% return to a 2% return; I don’t want us to start herking and jerking the portfolio based on emotion.”
“I think that’s the message I’m trying to send to investors; just relax; we see a pretty optimistic scenario for BTC, ETH, ALGO and Solana (SOL) over the next 12 to 24 months,” he added.
Scaramucci said that his company has an investment in Algorand, which is a competitor to Ethereum. However, BTC and ETH are still by far their two most important investments.
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