SkyBridge’s Scaramucci: Bitcoin Is ‘Technically Oversold’

The investment fund founder was philosophical about recent crypto debacles, including the collapse of the terraUSD stablecoin and luna token that supported it.

AccessTimeIconJun 23, 2022 at 10:20 p.m. UTC
Updated Jun 24, 2022 at 4:58 p.m. UTC

Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.

Given bitcoin’s (BTC) widening use in an increasing number of areas and the exponential growth of wallet activity, the crypto is “technically oversold” at current levels, Anthony Scaramucci, founder of investment firm SkyBridge Capital, said Thursday in a speech at the Collision conference in Toronto.

Scaramucci said investors may look back and recognize bitcoin being a “very cheap asset that we can take advantage of because of certain people being over-levered in the system.”

He said he was initially skeptical about bitcoin, though discussions years ago around digitizing the U.S. dollar spurred his interest in blockchain technology.

Scaramucci was philosophical about recent crypto debacles, including the collapse of the terraUSD (UST) stablecoin and the luna token that supported it, and the liquidity problems afflicting crypto hedge fund Three Arrows Capital. “I’ve seen those mistakes made several times,” he said.

The former Trump administration director of communications who has more recently jumped into digital assets said that during macroeconomic periods of “easy money” where nascent industries or technologies, such as crypto, emerge, younger sector participants have a “tendency to do things that are excessive and overboard."

SkyBridge has launched various bitcoin-related funds and also tried to garner approval for a spot bitcoin exchange-traded fund (ETF), which was rejected by the U.S. Securities and Exchange Commission (SEC).

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.

CoinDesk - Unknown

Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC