Scaramucci says market’s ‘overshot to the downside’ after FTX collapse is causing BTC to trade at huge discount
SkyBridge founder Anthony Scaramucci said during a Bloomberg TV interview that Bitcoin’s actual intrinsic value is around $40,000 and the flagship crypto is currently trading at an almost 50% discount.
He made the comment in response to being asked whether SkyBridge still believes in crypto after the FTX collapse or if the firm is looking to pivot into new investment avenues.
Scaramucci added that the past four months have been the best for SkyBridge since 2013.
The SkyBridge founder said he will stick with Bitcoin and SkyBridge has not changed its portfolio at all, which has already yielded rewards despite the scandalous collapse of FTX.
“A lot of things happened last year. You’re mentioning the Sam Bankman-Fried thing but it was almost like if John Meriwether and Bernie Madoff had a baby, it was Sam Bankman-Fried. You got everything in that story. You got fraud, you got over-leverage, you’ve got excess confidence.”
He said the FTX collapse caused a “really big depression in the markets,” which has probably resulted in an “overshot to the downside” for the crypto market. Once market sentiment becomes green again, the value of most cryptocurrencies will correct to appropriate levels.
Catalyst for price explosion
Scaramucci said current Bitcoin adoption is reminiscent of “roughly where the internet was in 1998.”
He said that Bitcoin’s current global absorption stands at 4% with approximately 340 million wallets and the value of the flagship cryptocurrency will continue to rise as more people start engaging with it.
“We just have to get from 4% to 8% and you’ll see explosive returns in Bitcoin.”
He added that the current downturn is temporary and people should be patient and wait for adoption to gain more traction as the industry comes out of the crypto winter.
Scaramucci said SkyBridge and its current equity owners intend to buy back the firm’s current stake in FTX and added that the firm’s current operations are unaffected by whether that goes through or not.
However, he said he is confident the firm will be able to repurchase its stake once it becomes possible as SkyBridge holds blocking rights on transfers and there are no economic, or preference ties to the stake ownership.
Scaramucci said that SkyBridge has been waiting to commence discussions with the bankruptcy trustees to repurchase its stake, but there is no definitive ETA for now. He added:
“The bankruptcy guys, they like taking their time and there seems to be a little bit of motivation for them to take their time.”
He did not clarify the comment further.
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