Anthony Scaramucci, founder of $3.5 billion asset management firm Skybridge Capital, has some advice for crypto investors to avoid a bear market and a crypto bloodbath.
Scaramucci on how to survive the crypto bear market
Skybridge Capital founder Anthony Scaramucci shared his bitcoin outlook and advice on how to avoid a selloff in the crypto market in an interview with CNBC on Monday.
“We are in a bloodbath,” he said. “This is my eighth bear market. I hope to survive this as well.” Scaramucci said:
I am encouraged by the fact that bitcoin is just above 50% of the total crypto market cap, which is another sign that there is a flight to quality.
“Of course, Celsius is putting pressure on him – just like the conditions in Luna Terra put pressure on him about six weeks ago,” he continued.
Cryptocurrency lending platform Celsius announced on Sunday night that it has halted withdrawals, while cryptocurrency Terra (LUNA) and stablecoin Terasad (UST) were stuck in early May.
The Skybridge executive offered some advice to help investors survive the crypto bear market. He began by recommending people to “stay unlearned but maintain their long-term investment themes.”
Scaramucci described: “Everyone has a long-term outlook until they have short-term damage … then they start setting their hair on fire and go around in a circle.” he said:
I am just cautioning people to buy quality and be free from levers and be disciplined.
He added that investors “should recognize that bear markets do happen,” adding that “if you look at it over the past 120 years they’ve probably happened about one every five years.” He added: “If you stay disciplined during that period, you can find yourself very wealthy, and I think that is the message for investors.”
Scaramucci was specifically asked whether being disciplined meant buying in a down market like what is happening on Monday.
He replied:
I definitely think so. We have bought more bitcoin and ethereum with the incremental cash coming into our funds.
He added that his company owns a private stake in cryptocurrency exchange FTX, noting: “FTX is doing very well. It is gaining market share, and it is a profitable company.”
The executive added: “Frankly, people will look at this debacle and say I wish I had fresh cash to buy it.”
Commenting on the collapse of some coins such as LUNA and UST, Scaramucci said: “There are over 8,000 coins … many of these projects are going to trade at zero. Five to 15 coins will be what we think is the future. There will be use cases for this.” He emphasized:
Certainly, many of these coins are going to be wiped out.
What do you think of Anthony Scaramucci’s advice? Let us know in the comments section below.
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