Hedge fund CEO Anthony Scaramucci says Bitcoin is 70% below fair value and predicts short recession this year: report
SkyBridge Capital founder Anthony Scaramucci says that bitcoin is well below its true fair value and that the bottom for BTC has likely already been reached.
In a new interview with MarketWatch, the veteran hedge fund manager says his firm’s metrics put the value of BTC at around $40,000.
BTC is changing hands for $23,422 as of this writing, about 70% below what Scaramucci calls fair value.
“We believe leverage has been blown out of the system. I don’t think it will break below the low set for this cycle which would be around $17,500.
According to our fair market value metrics based on adoption, wallet size, use cases and wallet growth, we believe the fair market value for Bitcoin is currently around $40,000.”
Scaramucci says he believes the top smart contract platform Ethereum (ETH) is also undervalued as its fair value is around $2,800. He also says that technical indicators are suggesting that BTC and ETH are heavily oversold.
However, he is not necessarily forecasting an imminent breakout of BTC and ETH anytime soon due to the macroeconomic headwinds.
“We on margin are net buyers, as additional cash flows into our funds we are net buyers of these two assets because we believe they are fundamentally undervalued and technically oversold.
Again, these are volatile assets. I think the point here is that people have to look at these assets over four to five years.”
The hedge fund’s CEO adds that he expects recent inflation affecting markets to ease by the end of the year.
“I think the second half of the year will surprise people because there is already a slowdown in consumption. There will likely be a shallow but not a deep recession because people have huge savings. And there are more jobs than people looking for them.”
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