The broader cryptocurrency market appears to be stabilizing after receiving a major push by the Consumer Price Index (CPI) data report coming out better than previously expected, with one crypto-enthusiastic hedge fund veteran predicting more fervor in the future.
Indeed, Anthony Scaramucci, the founder and CEO of investment management company SkyBridge Capital, discussed the possibility of digital assets emerging from the crypto winter in an interview with CNBC’s Squawk Box published on August 12.
During the interview, Scaramucci highlighted that he expected a lot more liveliness in the crypto market in the future, stating that:
“We think [with] the improvement of the lightning network, the increase in applications, and the ease of transactions on Bitcoin, you’re going to see a lot more commercial activity there.”
Scaramucci gives his take on the Merge
Scaramucci also commented on the upcoming Merge update of the Ethereum (ETH) blockchain, which will officially mark the network’s transition from the Proof-of-Work (PoW) to the Proof-of-Stake (PoS) algorithm and “which is going to lower the transaction fees on that network.”
According to him, “a lot of traders are probably buying that rumor (…), they’ll probably sell on the news of that Merger which is gonna happen in mid-September,” but he also cautioned against doing that. As he explained:
“These are great long-term investments. In the next six years, if we’re right, if Bitcoin goes to $300,000 a coin, it will not matter whether you bought it at $20,000 or $60,000.”
Is the worst behind us?
It is worth noting that Scaramucci also believes that the worst of the crypto bear market is now over and that Bitcoin’s fair market value is about $40,000, according to a Finbold report from the beginning of August.
Earlier, he had advised people to “stay disciplined” in mid-June, when the downfall of the Celsius lending platform was putting pressure on the entire market, only weeks after Terra (LUNA) collapse did the same.
Elsewhere, immediately after the CPI report for July came out, the crypto market reacted by pouring $50 billion into its market cap in one hour, adding up to the total of $250 billion flowing into it over the previous month.
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