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).
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