Skybridge Founder Advises How to Survive Crypto Bear Market — ‘We Are in a Bloodbath’ – Markets and Prices Bitcoin News
Anthony Scaramucci, the founder of Skybridge Capital, a $3.5 billion asset management firm, has some advice for crypto investors on how to survive a bear market and a crypto bloodbath.
Scaramucci on How to Survive Crypto Bear Market
Skybridge Capital founder Anthony Scaramucci shared his bitcoin outlook and advice on how to survive the crypto market sell-off in an interview with CNBC Monday.
“We are in a bloodbath,” he said. “This is my eighth bear market. I expect to survive this one as well.” Scaramucci opined:
I am encouraged by the fact that bitcoin is above 50% of the overall crypto market cap right now, which is another sign that there is a flight to quality there.
“Of course, Celsius is putting pressure on it — the same way that the LUNA terra situation put pressure on it about six weeks ago,” he continued.
Crypto lending platform Celsius announced Sunday night that it has frozen withdrawals while cryptocurrency terra (LUNA) and stablecoin terrausd (UST) imploded in early May.
The Skybridge executive proceeded to give some advice to investors to help them survive the crypto bear market. He began by recommending people to “stay unlevered but keep to your long-term investment disciplines.”
Scaramucci described: “Everybody has a long-term perspective until they have short-term losses … then they start to set their hair on fire and run around in a circle.” He said:
I’m just cautioning people to buy quality and be unlevered, and stay disciplined.
He added that investors should “Recognize that bear markets happen,” adding that “they probably happened one out of every five years if you look at it over the last 120 years.” He noted: “If you stay disciplined during those periods of time, you got yourself very wealthy, and I think that’s the message for investors.”
Scaramucci was specifically asked whether staying disciplined means buying in a down market like what’s going on Monday.
He replied:
I certainly think so. With incremental cash that comes into our fund we have bought more bitcoin and ethereum.
He added that his company has a private stake in cryptocurrency exchange FTX, noting: “FTX is doing very well. It’s gaining market share, and it’s a profitable company.”
The executive opined: “The truth be told, people will look back on this debacle and say I wish I had fresh cash to buy into that.”
Commenting on the collapse of some coins such as LUNA and UST, Scaramucci noted: “There’s over 8,000 coins … Many of these projects are going to trade to zero. There will be five to 15 coins that we think are going to be use cases for the future.” He stressed:
Certainly, a lot of these coins are going to get wiped out.
What do you think about Anthony Scaramucci’s advice? Let us know in the comments section below.
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