Anthony Scaramucci Urges Bitcoin Holders to Think Long-Term as Downtrend Won’t Last
Bitcoin’s downward trend has undoubtedly pushed investors to their limits. This is evidenced by the decline of the Fear & Greed Index in the extreme fear region, down to 11 on the scale. Investors are understandably wary of the market and what the coming weeks, and by extension months, could mean for them. If this is the start of a bear market, it could be another two years until the next bull rally.
However, Anthony Scaramucci has urged bitcoin investors not to despair during this time. Despite the market crash that sent the digital asset to a six-month low, Scaramucci, the CEO of Skybridge Capital, has told investors to look to the long term when investing in bitcoin.
The Bitcoin Crash Is Temporary
The CEO was on CNBC’s Squawk Box to talk about the crypto market. In this interview, Scaramucci shared some insight into how he saw the market and the current crash, which he says is no cause for alarm. He urged bitcoin buyers to take some time to cool off from the market, advising them to look at long-term investments rather than what the market is doing now.
Related literature | Has Bitcoin Hit Bottom? Analyst says there is still a long way to go
Holding bitcoin for the long term has always been the mantra of bitcoin maximalists, who believe more in the future of digital assets than what it does now. Scaramucci resonated with this in his final advice. The CEO explained that bitcoin investors should buy the digital asset for the long term, as well as other cryptocurrencies that he expects to do well in the future.
BTC trades north of $37,000 | Source: BTCUSD on TradingView.com
Scaramucci pointed to the fact that many investors say they invest in the long term, but are still afraid of what will happen in the short term. “Everyone is a long-term investor until you have short-term losses, and then you start to panic,” the CEO said. “Take a chill pill, stick with bitcoin, other cryptocurrencies like Algorand and Ethereum, and I think you will serve you very well in those investments in the long run,” he advised investors.
Forget the dollar, BTC is BTC
Currently, the value of bitcoin is derived from how much it sells compared to the dollar. This is how investors measure their positions and how well they are doing in the market. However, Scaramucci rejects this idea of valuing bitcoin in terms of dollar figures and urges investors to simply look at the digital asset for what it is; bitcoin. For the CEO, BTC is BTC and the dollar is the dollar.
Related literature | Bitcoin Whales Take Advantage Of Market Crash To Swallow Millions In BTC
He revealed that he tells clients of his investment company SkyBridge Capital to invest in cryptocurrencies as long as they are the right size. “I don’t want my clients to miss this. I tell them to size it properly – that’s a 1% to 3%, 1% to 4% allotment at cost. This is because the CEO believes that cryptocurrencies like bitcoin will inevitably be a part of the future.
Scaramucci also advised investors who become overly enthusiastic when they invest in the market. He supports the idea of putting a small percentage of an investment portfolio in cryptocurrencies, but warned against trying to use digital assets like bitcoin because of the high volatility and uncertainty that still cloud the digital asset. “It would be the same as Amazon in 1998, ’99 and 2000,” the CEO warned.
Featured image from Vanity Fair, chart from TradingView.com