Skybridge Capital

Scaramucci: ‘We’re through the bear market’ as Bitcoin notches up 70% YTD

Bitcoin’s strong start to 2023 is persisting despite numerous headwinds, and is currently outperforming the S&P 500 Index by nearly 60 percentage points.

Following Bitcoin’s (BTC) stellar start to 2023, SkyBridge Capital founder Anthony Scaramucci believes “we’re through the bear market” and expressed confidence in his firm’s crypto investments.

However, “the Mooch” qualified the statement by adding, “That is a guess. We don’t know.”

In an April 6 interview with Yahoo Finance, Scaramucci noted that Bitcoin has consistently outperformed every other asset class over longer periods of time, saying:

“But any time that you’ve held Bitcoin in a four-year rolling interval, so you pick the day, hold it for four years, you’ve outperformed every other asset class.”

Scaramacci also expressed his bullish outlook for the leading crypto by market cap ahead of the next halving cycle, which is set to take place in early March 2024, according to NiceHash.

Halving countdown according to NiceHash.

Bitcoin has historically operated on a four-year cycle, with the start of an upward trend occurring soon after each halving cycle.

The theory behind the price cycle is that block rewards being halved makes the BTC in existence more scarce and therefore more valuable.

Bitcoin has recorded gains of nearly 70% in 2023, according to Cointelegraph Pro, increasing from $16,521 to $28,060 compared to the S&P 500 index, which has risen by just over 7% during the same time period.

Bitcoin’s enviable start to 2023 also comes amid what can only be described as poor market and regulatory conditions that may yet weigh down the price.

Crypto institutions based in the United States are struggling to find banking partners and liquidity following the collapse of crypto-friendly banks such as Silvergate, Silicon Valley and Signature Bank, and there are fears that the U.S. is putting into place a policy to prevent banks from interacting with crypto.

Related: Bitcoin ‘faces headwinds’ as US money supply drops most since 1950s

Additionally, the two largest crypto exchanges in the world according to CoinMarketCap — Binance and Coinbase — have both been subject to recent scrutiny from regulators.

Coinbase received a Wells notice on March 22 notifying of possible enforcement action from the Securities and Exchange Commission, while Binance has been sued by the Commodity Futures Trading Commission for allegedly violating trading and derivatives rules

Yet, despite these events, crypto sentiment remains positive.

The Crypto Fear & Greed Index, an indicator used to measure crypto sentiment, is currently sitting in greed territory and is pushing for highs that haven’t been seen since November 2021 — Bitcoin’s all-time high.

Crypto Fear & Greed Index (screenshot). Source: Alternative.me

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‘Ninth circle of hell’ is reserved for SBF for his betrayal: Scaramucci

The SkyBridge founder opened up about his trust in FTX founder Sam Bankman-Fried which was ultimately broken after the exchange collapsed.

SkyBridge Capital managing partner Anthony Scaramucci has opened up about the “betrayal” he felt by the actions of FTX founder Sam Bankman-Fried, whom he said he once considered a friend.

Speaking at Casper Lab’s Blockchain Hub event in Davos, Switzerland, on Jan. 16, Scaramucci emphasized that in the aftermath of the FTX debacle, he felt “betrayed” by Bankman-Fried given that he had a close friendship with both him and his family.

“I have to tell you that the betrayal and the fraud, it’s bad on a lot of different levels, it certainly hurt me reputationally, but I’m just talking about the visceral relationship with somebody,” he said, adding:

“If anybody here has read Dante Alighieri’s Inferno, you know what the ninth circle of Hell is reserved for […] It’s for the betrayal of a friend who lives with the devil — the ninth circle of hell on the frozen lake.”

Anthony Scaramucci speaking Casper Lab’s Blockchain Hub. Source: YouTube

Explaining his relationship with Bankman-Fried in further detail, Scaramucci ultimately admitted that he bet on someone he trusted and “got it wrong.”

“I’m a high-profile person so my mistakes get wildly magnified, [that’s] totally fine but I’m not gonna stop the risk-taking,” he said, adding: “I thought Sam was the Mark Zuckerberg of crypto, I did not think he was the Bernie Madoff of crypto.”

However, the SkyBridge founder has not been deterred by the whole ordeal, as he emphasized that he has made a career off of taking risks, and as such he’ll “probably make that mistake again.”

Similarly, Scaramucci’s faith in crypto in has not been shaken either, as he stressed that FTX’s bankruptcy had nothing to do with the underlying value proposition of the technology.

“That’s why we have blockchain and crypto, because we’re trying to create a decentralized situation where we don’t have to like or trust each other. […] We can transact with each other in a way where the technology basically sanctifies.”

Related: Crypto community unimpressed by SBF’s lengthy Substack letter

As Scaramucci mentioned to CNBC on Jan. 13, SkyBridge is currently working on buying back a 30% stake in the company, which it sold to FTX for an undisclosed fee back in September.

Notably, the deal took place just two months before FTX filed for bankruptcy. Scaramucci stated that after all the legal details are sorted, the buyback could go through before the second half of this year.

Once that buyback goes through, Scaramucci will still have some loose ties to FTX via an investment he made into a crypto company founded by former FTX US president Brett Harrison. He confirmed the move to Bloomberg via email this week.

At this latest Blockchain Hub event, Scaramucci outlined that it’s important to back and support friends like Harrison, who has beenhaving a tough time due to his affiliation with FTX.

Harrison has of course distanced himself from the antics of SBF and his inner circle, and notably stepped down from the firm in September.

Scaramucci to invest in crypto firm founded by former FTX US boss

It is understood the crypto software company will enable crypto traders to create algorithmic-based strategies to access different markets.

SkyBridge Capital founder Anthony Scaramucci is investing in a crypto company founded by the former president of FTX US.

Scaramucci told Bloomberg in an email that he would be investing his own personal funds to support ex-FTX US president Brett Harrison’s new venture, which was revealed just three weeks after the collapse of crypto exchange FTX.

It is understood that the crypto software company — which doesn’t yet have a name — will enable crypto traders to create algorithmic-based strategies to access different markets, both centralized and decentralized.

It is also understood that Harrison has been seeking a fundraising target as high as $10 million for a $100 million valuation.

In a Jan. 14 tweet responding to Harrison’s lengthy thread on Sam Bankman-Fried and his time at FTX US, Scaramucci said he was “proud” to be an investor in Harrison’s new company.

Harrison replied to the tweet thanking Scaramucci, adding that “Your support and advice means the world to me. I can’t wait to work together!”

The amount of capital deployed and stake received by Scaramucci was not disclosed, however.

Harrison’s new crypto venture was first hinted at on Sept. 27, when he announced thahe was stepping down from his role as president of FTX US.

At the time, he said he was resigning his position as president but will remain with the exchange in an advisory role for the next few months.

“I can’t wait to share more about what I’m doing next,” he said at the time.

In his most recent Twitter thread, Harrison revealed that he left the firm after his relationship with Bankman-Fried abruptly deteriorated and that the troubles led him to shift his “focus to the future and to my own company.”

Related: Skybridge eyes stake buyback from FTX, as Galaxy CEO says he would like to ‘punch’ SBF

Meanwhile, Scaramucci continues to have high hopes for crypto market recovery this year, describing 2023’s market outlook as a “recovery year.”

In an interview with CNBC on Jan. 15, the crypto investor said he expects Bitcoin (BTC) to rebound to the $50,000-100,000 range within the next two to three years.

“You are taking on risk but you’re also believing in [Bitcoin] adoption. So if we get the adoption right, and I believe we will, this could easily be a fifty to one hundred thousand dollar asset over the next two to three years,” he added.

At time of publication, Bitcoin was currently trading at $21,240, up 21.77% over the last week.

Bitcoin won’t hedge inflation until it hits 1B wallets: Scaramucci

The Skybridge Capital CEO said Bitcoin needs much more proliferation before it can act as an inflation hedge.

Skybridge Capital CEO Anthony Scaramucci believes that while Bitcoin continues to be an attractive asset, it has not reached the “wallet bandwidth” that is required for it to be considered an inflation hedge. 

Speaking on CNBC’s Squawk Box on Aug 22. the global investment management CEO said Bitcoin was still too much of “an early adopting technical asset” which would need to be held in around a billion wallets before it would begin to act as a hedge against inflation.

“Until you get into the billion, billion-plus zone, I don’t think you’re going to see Bitcoin as an inflation [hedge] as it’s still an early adopting technical asset.”

While the exact number of Bitcoin wallets in the world is unknown, estimates place this number at approximately 200 million.

In its earlier years, some touted Bitcoin as a potential hedge against inflation, given its fixed supply of 21 million coins. This narrative has changed over time, however, as Bitcoin has been observed as being increasingly correlated to the stock market, according to a new IMF report. 

Scaramucci said he was still bullish on Bitcoin and the overall crypto market pointing to recent moves from BlackRock to launch a new private spot Bitcoin trust with Coinbase as the custodian — a sign that there is strong institutionalized demand for the leading cryptocurrency.

Scaramucci believes that the markets are currently filled with a ton of short positions, which could result in people getting “their faces ripped off when they least expect it.

In a recent interview with Cointelegraph, Steven Lubka, managing director of private clients at Swan Bitcoin argued that Bitcoin should still be considered an inflation hedge.

While Lubka agreed that Bitcoin has failed to act as an inflationary hedge during the global inflation events this year, he believes that this inflation has been predominantly caused by supply shocks rather than monetary expansion — where Bitcoin is able to hedge against inflation more effectively.

Related: UK hits double-digit inflation for the first time in 40 years

As of the time of writing, Bitcoin’s price is currently $21,406, down 69.01% from its all-time high of $69,045 on November 11 last year.

Also speaking on ‘Squawk Box’ on Monday, Coinshare’s chief strategy officer Meltem Demirors said she expects Bitcoin prices will continue to remain flat throughout the third quarter as the price correlation between tech equities and cryptocurrencies continues.


Bitcoin won’t hedge inflation until it hits 1B wallets: Scaramucci

The Skybridge Capital CEO said Bitcoin needs much more proliferation before it can act as an inflation hedge.

Skybridge Capital CEO Anthony Scaramucci believes that while Bitcoin (BTC) continues to be an attractive asset, it has not reached the “wallet bandwidth” that is required for it to be considered an inflation hedge. 

Speaking on CNBC’s Squawk Box on Monday. the global investment management CEO said Bitcoin was still too much of “an early adopting technical asset” which would need to be held in around a billion wallets before it would begin to act as a hedge against inflation:

“Until you get into the billion, billion-plus zone, I don’t think you’re going to see Bitcoin as an inflation [hedge] as it’s still an early adopting technical asset.”

While the exact number of Bitcoin wallets in the world is unknown, estimates place this number at approximately 200 million.

In its earlier years, some touted Bitcoin as a potential hedge against inflation, given its fixed supply of 21 million coins. This narrative has changed over time, however, as Bitcoin has been observed as being increasingly correlated to the stock market, according to a new IMF report. 

Scaramucci said he was still bullish on Bitcoin and the overall crypto market pointing to recent moves from BlackRock to launch a new private spot Bitcoin trust with Coinbase as the custodian — a sign that there is strong institutionalized demand for the leading cryptocurrency.

Scaramucci believes that the markets are currently filled with a ton of short positions, which could result in people getting “their faces ripped off when they least expect it.”

In a recent interview with Cointelegraph, Steven Lubka, managing director of private clients at Swan Bitcoin, argued that Bitcoin should still be considered an inflation hedge.

While Lubka agreed that Bitcoin has failed to act as an inflationary hedge during the global inflation events this year, he believes that this inflation has been predominantly caused by supply shocks rather than monetary expansion — where Bitcoin is able to hedge against inflation more effectively.

Related: UK hits double-digit inflation for the first time in 40 years

As of the time of writing, Bitcoin’s price is currently $21,406, down 69.01% from its all-time high of $69,045 on Nov. 11 last year.

Also speaking on Squawk Box on Monday, Coinshare’s chief strategy officer Meltem Demirors said she expects Bitcoin prices will continue to remain flat throughout the third quarter as the price correlation between tech equities and cryptocurrencies continues.


Scaramucci highlights key factors why crypto market will soon recover

Anthony Scaramucci cited the Merge, improving macro indicators such as waning inflation, key business partnerships and pumping crypto prices as reasons for his optimism moving forward.

Founder and managing partner of Skybridge Capital, Anthony Scaramucci, has an optimistic outlook for the future of crypto markets, advising investors to “see through the current environment” and “stay patient and stay long term.”

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

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

“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,” he added.

Ethereum Merge on the horizon

Scaramucci cited the upcoming Ethereum Merge scheduled for Sept. 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 are buying the cryptocurrency based on the potential positives the merger could bring, but he also notes they could turn around and sell just as fast.

“A lot of traders are probably buying that rumor; they will probably sell on the news of that merger,” he said, adding that “I would caution people not to do that; these are great long term investments,” he added.

Recovery slow but steady over the last month

Despite the ongoing crypto bear market, many top cryptocurrencies have posted modest gains. BTC is up 20% in the last month to sit at $24,954 at the time of writing, while the price of Ether (ETH) has surged a hefty 62% to $1999, according to data from Cointelegraph Markets Pro and TradingView.

Scaramucci noted that he’d seen a resurgence of investor interest, and with better-than-expected inflation numbers in July, he believes the global economy can return to its strong 2019 Quarter 4 status within 6 to 12 months.

Overall, Scaramucci has a positive outlook for the crypto market and cautions investors to take care with knee-jerk reactions to bad news and emotion-based trading.

His firm believes that BTC could see 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,” he said:

“If you’re out of 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.”

“I think that’s the message I’m trying to send to investors; just relax; we see a pretty optimistic scenario for BTC, ETH, ALGO and Solana (SOL) over the next 12 to 24 months,” he added.

Scaramucci mentioned his firm has a position in Ethereum competitor Algorand, but by far their two most significant positions are still in BTC and ETH.