Scaramucci highlights key factors why crypto market will soon recover

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Anthony Scaramucci, founder and managing partner of Skybridge Capital, has an optimistic view of the future of the cryptocurrency markets, advising investors to “see the current environment” and “be patient and stay long-term.”

In an interview with CNBC, the hedge fund manager spoke of his belief that several recent developments in the crypto space could spark “a lot of business.”

In particular, he highlighted the ever-improving Lightning Network, the two-layer payment protocol on top of Bitcoin, BlackRock’s partnership with Coinbase, and the creation of a Bitcoin (BTC) private trust fund as positive signs for the future:

“Finally, CEO Larry Fink sees institutional demand for digital assets. Otherwise, he wouldn’t set up these products, and he wouldn’t collaborate with Coinbase.”
“I just want to remind people that there are only 21 million bitcoins out there, and you will have a demand shock with very little supply,” he added.

Ethereum integration on the horizon
Scaramucci cited the upcoming Ethereum merger scheduled for September 15, which will change the network’s consensus mechanism to Proof of Stake (PoS), as an event that could affect the market price of the second largest cryptocurrency.

In his opinion, traders buy cryptocurrency based on the potential positives that the merger can bring, but it also indicates that they can turn around and sell just as quickly.

“A lot of traders will probably buy this rumor; they will probably sell the news of this merger,” adding, “I will warn people not to do this; these are big long-term investments.”

The recovery is slow but steady over the past month
Despite the ongoing bear market for cryptocurrencies, many of the top cryptocurrencies have posted modest gains. Bitcoin is up 20% in the last month to $24,954 at the time of writing, while Ether (ETH) is up 62% to $1,999, according to data from Cointelegraph Markets Pro and TradingView.

Scaramucci noted that he has seen a resurgence in investor interest, and with better-than-expected inflation numbers in July, he believes the global economy could return to its strong position in the fourth quarter of 2019 within 6 to 12 months.

Overall, Scaramucci has a positive outlook for the crypto market and cautions investors to be mindful of quick reactions to bad news and emotion-based trading.

His company believes that BTC could experience an unprecedented boom over the next six years.

“If we are right, if BTC goes to $300,000 a coin, it doesn’t matter if you buy it for $20,000 or $60,000; the future is on us,” he said.

“If you were out of the market for the best ten days, you lowered your yield from a 7.5% yield to a 2% yield; I don’t want us to start rocking and bobbing on emotion.”
“I think this is the message I am trying to send to investors; just relax we see a very bullish scenario for BTC, ETH, ALGO and Solana (SOL) over the next 12 to 24 months.”

Scaramucci mentioned that his company has a position in Ethereum competitor Algorand, but so far its two most important positions remain in BTC and ETH.

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