The top digital asset in the crypto game, Bitcoin (BTC), has been below the $25,000 support line for quite some time now. Anthony Scaramucci, the founder of SkyBridge Capital, an established investment management company, believes that’s not fair for Bitcoin (BTC).
Controversies Have Knocked Out the Leverage
In a recent interview for MarketWatch, Scaramucci stressed that the notorious downfall of brokerage firm Voyager Digital, crypto lending platform Celsius, hedge fund Three Arrows Capital (3AC), and of course, the staggering fiasco of Do Kwon’s Terra (UST) & Terra (LUNA) set off a panic alarm in the crypto community.
In addition to that, 2022 has seen a gigantic amount of crypto being stolen, mostly through phishing exploits. Since all of this happened, it’s no surprise that the crypto Fear & Greed Index has been mostly on the side of extreme fear for a while. Even though Mr. Scaramucci is sure Bitcoin (BTC) will bounce back from the trials and tribulations, the well-known investor doesn’t necessarily think this is going to happen fast. At the moment, “We believe that the leverage has been blown out of the system,” concludes Scaramucci.
$17,500 Was Most Likely the Rock Bottom for BTC
Furthermore, the founder of SkyBridge Capital said he doesn’t think “it’s going below the low that was reached for this cycle, which would be at around $17,500.” As his company had to halt all withdrawals from Legion Strategies, Mr. Scaramucci revealed that he had to liquidate the private investments of the company to keep up with the harsh winds of the crypto winter.
Ultimately, the well-established investor paints a brighter picture for Bitcoin (BTC) in the future. According to SkyBridge’s analysis, which includes “fair market value metrics based on adoption, wallet size, use cases, growth of wallets, the fair market value for Bitcoin right now is about $40,000.”
Be that as it may, the top cryptocurrency trades at $23,024.66 at press time, according to CoinGecko. Bitcoin (BTC) has been bouncing around the $23,000 support line for two weeks in a row and has lost 40% of its value since a year ago.
On the Flipside
- Other Bitcoin (BTC) investors believe the top coin can fall to as low as $10,000