Skybridge Capital’s founder says bitcoin’s fair market value is about $40,000 based on adoption, wallet size, use cases, and growth of wallets. The asset management firm also estimated ethereum’s fair market value at around $2,800.
Skybridge Capital on Fair Prices for Bitcoin and Ethereum
Anthony Scaramucci, founder and managing partner of global asset management firm Skybridge Capital, shared his firm’s predictions on the fair market values of bitcoin (BTC) and ether (ETH) in an interview with MarketWatch published on Tuesday.
He believes that the worst of the crypto bear market has passed and bitcoin has already bottomed. His comments followed bankruptcy filings by a number of crypto firms, including Celsius Network and Voyager Digital.
“We believe that leverage has been blown out of the system,” Scaramucci said. While acknowledging that BTC could still fall, he emphasized: “I don’t think it is going to go down for this cycle at least, which would be 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 the fair market value of Ether is 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.
Due to macroeconomic uncertainties, Scaramucci does not expect the price of bitcoin to rise directly. “Again, these are volatile assets. I think the issue here is that people should take a four to five-year view of these assets,” he cautioned.
The executive noted:
We on the margin are net buyers, as incremental cash comes into our funds we’re net buyers of those two assets, because we think that they’re fundamentally undervalued and technically oversold.
Last month, Skybridge Capital suspended redemptions in its Legion Strategies fund following a sharp drop in stocks and cryptocurrencies. About 20% of the fund was in private investments and about 18% in crypto-related investments, including private investments in digital asset firms such as BTC and crypto exchange FTX, he elaborated.
Scaramucci confirmed that withdrawals are still halted, adding that the move was necessary to keep the fund’s composition intact after investment bank Morgan Stanley put a sell recommendation on the fund.
“I can’t push private investment too much,” the Skybridge founder insisted. “Until I have the proper fairness and balance in the fund, I can’t let everyone out in this moment.” He disclosed that the fund is currently selling off some of its private investments, noting: “Once we get liquidated on those investments, we’ll drop whatever we want to get out.”
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 US economy, the Skybridge executive said, “I think the second half of the year is going to surprise people because there is already a slowdown in consumption.” They said:
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.