Hardly anyone expected cryptocurrencies to fall in value so hard. But do not be sad; after rain comes sunshine, a new bull market can of course never be ruled out. Antony Scaramucci of the investment fund SkyBridge Capital has not yet been discouraged. He expects that we will soon find ourselves in better waters.
Bitcoin back in bull market soon?
The US central bank, the Federal Reserve, is seen by many as a major cause of the bear market in crypto. After all, inflation is high, and investing in cryptocurrencies is theoretically a way to protect the value of your money. Unfortunately, as a crypto-HODLer you have probably had a very hard time.
Inflation has caused the central bank to raise interest rates at a record pace, which has also put a dent in assets outside of the crypto world. Anthony Scaramucci spoke at the Bloomberg New Economy Forum. He thinks this harsh policy will soon come to an end. He thinks that if inflation falls to 4 to 5% the Fed will stop raising interest rates.
This would cause surges in the crypto market. Many people will, according to the CEO short are on cryptocurrencies, which would force them to close their positions. This could represent a rebirth of the crypto market. Unfortunately, he does not clarify whether he thinks interest rates will only stop rising, or whether they will start falling again. According to Bloomberg, Scaramucci’s fund has about a 10% exposure to bitcoin (BTC).
Scaramucci hit by SBF and FTX
The investor also stated that he has lost money on the problems at FTX. SkyBridge received $45 million in capital from FTX founder Sam Bankman-Fried just before FTX ran into trouble. He used the money to $10 million to buy FTT tokens. This would have sold SkyBridge for a loss of $9.6 million.
Earlier this year, he compared his former boyfriend to con artist Bernie Madoff. There would be a place reserved for SBF in the ninth circle of hell.