Skybridge Estimates Fair Market Value for Bitcoin at $40K, Ethereum at $2,800 – Markets and Prices Bitcoin News

According to the founder of Skybridge Capital, Bitcoin has a fair market value of around $40,000 based on adoption, wallet size, use cases and growth in wallets. The asset manager also estimates the fair market value of ethereum to be around $2,800.

Skybridge Capital on the fair value of Bitcoin and Ethereum

Anthony Scaramucci, founder and managing partner of global asset management firm Skybridge Capital, shared his firm’s forecast for the fair market value of bitcoin (BTC) and ether (ETH) in a Marketwatch interview published on Tuesday.

He believes that the worst of the cryptocurrency bear market is over and Bitcoin has bottomed out. His comments come after a number of cryptocurrency companies, including Celsius Network and Voyager Digital, filed for bankruptcy.

“We think the leverage of the system has been broken,” Scaramucci said. While recognizing that BTC could still slide, he stressed: “I don’t think it will go below the lows reached this cycle, around $17,500.”

The founder of Tianqiao Capital further shared:

Based on our fair market value metrics based on adoption, wallet size, use cases, wallet growth, we believe Bitcoin’s current fair market value is around $40,000.

He added that the fair market value of Ethereum is around $2,800.

At the time of writing, Bitcoin is trading at $23,167.48, up 14% over the past 30 days. Ether is trading at $1,650.88, up 43% over the past 30 days.

Scaramucci doesn’t expect Bitcoin’s price to rise in a straight line due to macroeconomic uncertainty. “Again, these are volatile assets. I guess the problem here is that people need to take a four- to five-year view on these assets,” he warned.

The executive noted:

We are net buyers on the margin, and with incremental cash coming into our fund, we are net buyers of both assets because we believe they are fundamentally undervalued and technically oversold.

Last month, Skybridge Capital suspended redemptions of its Legion Strategies fund after stocks and cryptocurrencies fell sharply. He detailed that about 20% of the fund is used for private investments and about 18% is used for cryptocurrency-related investments, including BTC and private investments in Crypto asset companies such as cryptocurrency exchange FTX.

Scaramucci confirmed that withdrawals remained halted, adding that the move was necessary to keep the fund’s composition intact after investment bank Morgan Stanley made a sell recommendation for the fund.

“I can’t let private investment get too high,” stressed the Skybridge founder. “I can’t let everyone go until I can get the proper fairness and balance in the fund.” He revealed that the fund is currently selling some of its private investments, noting: “Once we get liquidity on those investments, We’ll let anyone who wants to remove it.”

Scaramucci has long said he expects bitcoin to hit $100,000 this year and $500,000 in the long run. “If you’re willing to zoom in and look at the long-term charts and look at adoption, can Bitcoin get to $500,000 a coin? I’m sure it will,” he said in March. In June, he advised investors to “buy high-quality products, not deleverage, and maintain self-discipline.” He pointed out that a lot of tokens will be destroyed.

Commenting on the U.S. economy, the Skybridge executive said, “I think the second half of the year will be a big surprise because consumption has slowed.” He argued:

Because people have a lot of savings, a shallow recession is possible, but not a deep one. And there are more jobs than people looking for them.

What do you think of Skybridge Capital’s forecast? Let us know in the comments section below.

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