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The Skybridge Capital founder mentioned the highly-anticipated Ethereum merge as a possible push for a crypto rebound.
Anthony Scaramucci, founder and managing partner of investment management company Skybridge Capital, is bullish on the future of crypto. In the interview with CNBC, the managing partner highlights some developments in the crypto industry that could trigger a recovery. In his opinion, recent space movements could lead to “a lot more commercial activity.” He also advised investors to manage through the current market condition, stay patient and “stay long term.”
Noting the key factors that could propel a recovery from the declining crypto market, he expects a positive outlook for cryptocurrencies, noting the Lightning Network, the recently-announced partnership between Coinbase (NASDAQ: COIN) and BlackRock, as well as the launch of the Bitcoin private trust. BlackRock announced the Bitcoin private trust for institutional clients, initially available in the US. The company’s CEO, which earlier said it was not seeing enough demand to roll out Bitcoin offering, said institutional consumers are now showing interest in the digital coins. This is despite the recent crypto crash that has claimed over 50% valuation from top cryptocurrencies.
Scaramucci believes the BlackRock-Coinbase collaboration could be a positive turnaround for crypto.
“Finally, CEO Larry Fink is seeing institutional demand for digital assets. Otherwise, he wouldn’t be setting up those products, and he wouldn’t be teaming up with Coinbase. I just want to remind people that there are only 21 million Bitcoins out there, and you’ll have a demand shock with very little supply.”
Skybridge Capital Founder Says Ethereum Merge Could Cause Rebound for Crypto
Furthermore, the Skybridge Capital founder mentioned the highly-anticipated Ethereum merge as a possible push for a crypto rebound. The Ethereum blockchain developers have agreed that the upgrade will happen on the 15th of September. The coming merge will transit the blockchain from a Proof-of-Work (PoW) consensus model to Proof-of-Work (PoW). In Scaramucci’s opinion, the event could push Ethereum’s price. At press time, ETH is down 5.33% to $1,907.85. Ethereum has spiked about 62% over the past month. However, he added that some investors may also see the merger as an indicator to sell off their ETH holdings. He said many traders might sell upon the successful upgrade. Scaramucci added that he would “caution people not to do that; these are great long term investments.”
Like Ethereum, Bitcoin has pumped 20% in the last month and is currently trading around $24,100. The Skybridge Capital executive specifically said BTC, among other crypto assets, could experience an unprecedented upswing over the next six years.
“If we are right, if BTC goes to $300,000 USD a coin, it will not matter if you bought it at $20,000 USD, $60,000 USD; the future is upon us; it’s happening sooner than I thought. If you’re out f the market for the ten best days, you’ve reduced your return from a 7.5% return to a 2% return; I don’t want us to start herking and jerking the portfolio based on emotion,” said he.