SkyBridge Capital CEO Anthony Scaramucci says investors would do well if they looked at Bitcoin (BTC/USD) and Ethereum (ETH/USD) – the two top cryptocurrencies in the market by market cap – as long term investments.
Scaramucci, the founder of the US-based investment management firm, shared these views during an interview with CNBC’s ‘Squawk Box.’
On crypto winter, BTC and ETH outlook
This week saw Bitcoin price hit its highest level in over two months, breaking above $24,000 as the crypto market breathed some fresh air following a tough half of the year.
The upside followed a broader risk market rally as inflation appears to slow following the latest US consumer price index (CPI) data. According to Scaramucci, the crypto market could be looking at the start of a march towards a new cycle, with both Bitcoin and Ethereum likely to be boosted by two key developments.
While suggesting it would be okay to ‘buy the rumour’ but not so about ‘selling the news’ – the SkyBridge chief noted:
As it relates to Bitcoin, we think that the improvement of the lightning network, the increase in applications and the ease of transactions on #Bitcoin, you’re going to see a lot more commercial activity there.”
“The improvement of the lightning network, the increase in applications and ease of transactions on #Bitcoin, you’re going to see a lot more commercial activity there,” says @scaramucci. “If $BTC goes to $300K a coin, it will not matter whether you bought it at $20K or $60K.” pic.twitter.com/MSlyFRLm06
— Squawk Box (@SquawkCNBC) August 12, 2022
For Ethereum, Scaramucci says the upcoming merge will be key to lowering transaction fees on the network, indicating further growth of the ecosystem. He notes its likely investors would sell on the “merge” news in mid-September, something he advises against. Commenting on the outlook for both BTC and ETH, he opined:
These are great long-term investments. In the next six years – if we’re right – if Bitcoin goes to $300,000 a coin, it will not matter whether you bought it at $20,000, $60,000. It really isn’t going to matter.”
On the overall crypto market outlook, Scaramucci says the “future is upon us,” suggesting the crypto winter is nearly ending.
He says the optimism for crypto is informed by the increased entry of institutional players, citing BlackRock’s launch of a spot Bitcoin private trust and recent partnership with Coinbase to offer clients access to crypto trading and other investment opportunities.
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