The Founder of SkyBridge Capital – Anthony Scaramucci – advised investors to cool off on their concerns regarding the most recent plunge in the cryptocurrency market. He believes bitcoin, as well as other digital assets, are the right investment tools for the long-term, and people should not abandon them because of their current price dips.
The last several days were not pleasant for the cryptocurrency industry, as many assets lost a significant chunk of their USD value. Bitcoin, for example, dropped to below $33,000, losing over $10,000 in less than a week (its lowest level since July 2021).
By the looks of it, the shaky condition of the digital asset market is not a concern to Anthony Scaramucci. In a recent interview for CNBC, the 58-year-old American said such price fluctuations should be considered a part of the strategy of long-term investors.
“Everyone is a long-term investor until you have short-term losses, and then you start freaking out.”
Unlike many analysts who opined that the price plunge marks the beginning of a “crypto winter,” Scaramucci reaffirmed his optimistic viewpoint on the industry. He even recommended that investors should “take a chill pill” and not sell their positions:
“Take a chill pill, stay long bitcoin, other cryptocurrencies like Algorand and Ethereum, and I think you’re going to be very well-served long-term in those investments.”
This is not the first time Scaramucci has been bullish during bearish times. At the end of November 2021, fears around the newly detected strain of COVID-19 – Omicron – caused panic in all global financial markets. As a result, the prices of most digital assets sank significantly. However, SkyBridge’s exec described the event as a “Black Friday,” hinting it was the perfect time for investors to increase their crypto exposure.
Don’t Invest Everything in BTC
Despite his positive stance towards the cryptocurrency space, Scaramucci warned investors to appropriately scale their BTC investments. To him, the allocation in it should be relatively small:
“I don’t want my clients to miss this. I’m telling them to size it appropriately – that’s a 1% of 3% allocation, 1% to 4% at cost. You can let it run, of course. But size it appropriately, then recognize that this is going to be part of our future.”
In September 2021, he came up with similar advice recommending the public to invest not more than 5% of their total savings in bitcoin. Thus, in case of a price expansion, they would still enjoy solid profits. On the other hand, if bitcoin’s value starts declining, the loss would be somewhat insignificant.