According to the founder of Skybridge Capital, the fair market value of bitcoin is about $40,000, based on adoption, wallet size, use cases and wallet growth. The asset management firm also estimated ethereum’s fair market value at about $2,800.
Skybridge Capital on just Bitcoin and Ethereum values
Anthony Scaramucci, founder and managing partner of asset management firm Skybridge Capital, shared his firm’s predictions on the fair market values of bitcoin and ethereum in an interview with Marketwatch published Tuesday.
He believes that the worst of the crypto-currency bear market is over and that bitcoin has already hit bottom. His comments follow the bankruptcy filings of a number of crypto-currency companies, including Celsius Network and Voyager Digital.
“We believe that leverage has disappeared from the system“, said Anthony Scaramucci. While acknowledging that Bitcoin could still slip, he stressed, “I don’t think it will go below the low for this cycle, which would be around $17,500.“
The founder of Skybridge Capital also shared:
Based on our fair market value metrics based on adoption, wallet size, use cases, wallet growth, we believe the fair market value of bitcoin is currently around $40,000.
He added that the fair market value of ether is about $2,800.
Bitcoin is trading at $23,167.48, up 14 percent over the past 30 days. Ethereum is trading at $1,650.88, up 43% in the last 30 days.
Anthony Scaramucci doesn’t expect the price of bitcoin to rise directly due to macroeconomic uncertainties. “Again, these are volatile assets. I think what’s at stake here is that people need to have a four- or five-year view of these assets” he cautioned.
He also noted:
We are net buyers, as additional cash comes into our funds, we are net buyers of both of these assets, because we think they are fundamentally undervalued and technically oversold.
Last month, Skybridge Capital suspended redemptions in its Legion Strategies fund after sharp declines in stocks and crypto-currencies. About 20 percent of the fund was invested in private equity and about 18 percent in crypto-currency-related investments, including. BTC and private investments in digital asset companies such as crypto-currency exchange FTX, he detailed.
Anthony 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 issued a sell recommendation on the fund.
“I can’t let private investment go too high“, stressed the Skybridge founder. “I can’t let everyone out right now until I can get proper equity and balance in the fund“. He revealed that the fund is currently selling some of its private investments, noting, “Once we get liquidity on those investments, we will then let those who want to exit.“
Anthony Scaramucci has long said that he expects the price of bitcoin to reach $100K this year and $500K in the long run. “If you’re willing to zoom out and look at the long-term chart and adoption history, could bitcoin reach half a million dollars a coin? I think so.” he said in March. In June, he advised investors “to buy quality, be unleveraged and stay disciplined“. He noted that many parts would be eliminated.
About the U.S. 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.“He opined:
There will probably be a shallow recession, but not a deep one, because people have an enormous amount of savings. And there are more jobs available than people looking for them.