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

Skybridge Capital’s founder says bitcoin’s fair market value is about $40,000 based on adoption, wallet size, use cases, and growth of wallets. The asset management firm also estimated ethereum’s fair market value at around $2,800.

Skybridge Capital: Bitcoin and Ethereum Fair Values

Anthony Scaramucci, founder and managing partner at global asset management firm Skybridge Capital, shared his firm’s predictions on the fair market values of bitcoin (BTC) and ether (ETH) in an interview with Marketwatch, published Tuesday.

According to him, the worst part of the crypto bear markets has ended and bitcoin is now bottomed. He made these comments after bankruptcy filings of a few crypto companies, such as Celsius Network and Voyager Digital.

“We believe that the leverage has been blown out of the system,” Scaramucci said. While recognizing that BTC could still slide, he emphasized: “I don’t think it’s going below the low that was reached for this cycle, which would be at around $17,500.”

Skybridge Capital’s founder also shared this:

Based on the adoption rate, wallet size and use cases as well growth in wallets, our fair market valuation metrics, we believe that bitcoin’s fair market price right now is around $40,000.

He added that ether’s fair market value stands at around $2,800.

Bitcoin is currently trading at $23,167.48 as of the writing. This represents an increase of 14% over the previous 30 days. Ether traded at $1,650.88 in the last 30 day, an increase of 43%.

Scaramucci doesn’t expect bitcoin prices to rise due to macroeconomic uncertainty. “Again, these are volatile assets. I guess what’s at issue here is people need to take a four to five years view of these assets,” he cautioned.

According to the executive,

We on the margin are net buyers, as incremental cash comes into our funds we’re net buyers of those two assets, because we think that they’re fundamentally undervalued and technically oversold.

Skybridge Capital has stopped redeeming funds in Legion Strategies after sharp drops in cryptocurrency and stocks. He said that about 20% of the fund went to private investments while 18% went to crypto-related investment, which included BTC and private digital asset investments such as FTX.

Scaramucci confirmed that withdrawals are still halted, adding that the move was necessary to keep the fund’s composition intact after investment bank Morgan Stanley put a sell recommendation on the fund.

“I can’t have the private investments go too high,” the Skybridge founder stressed. “I can’t let everybody out right at this second until I can have appropriate fairness and balance in the fund.” He revealed that the fund is currently selling some of its private investments, noting: “Once we get liquid on those investments, we will then let whoever wants to get out.”

Scaramucci says that the bitcoin price should reach $100K by this year, as well as $500K for the long-term. “If you’re willing to zoom out and look at the long-term chart and look at the adoption story, could bitcoin get to half a million dollars a coin? I believe it will,” he said in March. In June, he advised investors to “buy quality and be unlevered, and stay disciplined.” He noted that a lot of coins will get wiped out.

Commenting on the U.S. economy, the Skybridge executive said, “I think the second half of the year is going to surprise people because there’s already a slowdown in consumption.” He opined:

People have huge amounts of savings so there is a chance that it will not be a severe recession. There are many more job opportunities than those who seek them.

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Kevin Helms

Kevin is a graduate of Austrian Economics. He discovered Bitcoin in 2011, and has been an advocate ever since. He is interested in Bitcoin security and open-source software, network effects, and the intersection of cryptography and economics.