Skybridge Capital founder Anthony Scaramucci says that investors should not panic sell even as the crypto market suffers yet another brutal bloodbath.
Speaking to CNBC’s ‘Squawk Box’ on Monday, he noted that the best cause of action for investors as the bear market rages on is to “stay disciplined.”
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BTC dominance shows there’s “flight to quality”
Scaramucci believes that both crypto and stock markets will continue to face some downward pressure. In the short term, the downside from Celcius Network will do what LUNA did a couple of weeks ago, combining with higher interest rates to dampen investor confidence.
According to him, rate hikes of 1%-2% can easily push markets down by 10% to 15%.
A look at the market suggests this is likely the scenario, with Bitcoin dipping further on Monday to break below $23,000 for the first since 2020.
The overall crypto market has lost over 12% of its total valuation, and Bitcoin’s market cap has declined to below $500 billion. However, the flagship cryptocurrency’s dominance index suggests more people are likely selling alts to stack sats.
I am encouraged by the fact that Bitcoin is above 50% of the overall crypto market cap right now which is another sign that there’s a flight to quality there.”
He opined that while investors might panic, this is the time to take a long term view. This includes buying quality and staying disciplined.
Bitcoin price can hit $100K
According to the Skybridge chief, the current market outlook is not that different from March 2000, when internet stocks cratered and most of Web 1 projects went to zero – except for a few “gems” like Amazon.com.
Scaramucci sees a similar trajectory in crypto, and is bullish on Bitcoin (BTC) long term. He noted that the firm has bought more Bitcoin and Ethereum. Skybridge is also invested in cryptocurrency platform FTX, which he said was “doing well” and is profitable.
About Bitcoin’s future value, Scaramucci says its “impossible to predict” just how further the leg down can extend. But he’s confident of a bounce that could push BTC/USD to $100,000 or more.
“If you were at consensus last week and saw the robust development in Web3 and see the money that’s deployed, I think the upside is enormous. I still believe Bitcoin can get to $100,000 a coin in the next 12 to 24 months.”
Notably, Scaramucci says the market still has a lot of contra indicators. However, it’s also overwhelmingly bearish “out there” – the last time the market was this bearish was in 2009. According to him, this is a good signal. Also, positive is the ongoing adoption amid other fundamental developments, meaning its price action that’s just negative.
Bitcoin currently trades around $22,870, nearly 18% down in the past 24 hours. Ethereum hs plunged more than 20% to around $1,220.
Stocks have also plummeted, with S&P 500 sliding into bear territory with fresh losses in Monday’s session after dropping by 3.7%.
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