Anthony Scaramucci Urges Bitcoin Holders To Think Long-Term As Downtrend Won’t Last
January 26 2022 - 3:30PM
NEWSBTC
The bitcoin downtrend has no doubt rocked investors to their core.
This is evidenced by the decline of the Fear & Greed Index into
the extreme fear territory, reaching as low as 11 on the scale.
Investors, understandably, are wary of the market and what the next
few weeks, and by extension, months, may hold for them. If this is
the beginning of a bear market, then there could be another
two-year wait to the next bull rally. Anthony Scaramucci has
however urged bitcoin investors not to despair during this time.
Despite the market crash that sent the digital asset to six-month
lows, Scaramucci, who is the CEO of Skybridge Capital, has told
investors to look towards 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 viewed the market and the current crash,
which he does not believe is a cause for alarm. He urged bitcoin
buyers to take some time to cool off from the market, advising them
to look toward long-term investing instead of what the market is
doing right now. Related Reading | Has Bitcoin Reached Its
Bottom? Analyst Says It Still Has 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 the digital asset
than what it is doing in the present. Scaramucci has resonated with
this in his latest advice. The CEO explained that bitcoin investors
need to buy the digital asset for the long-term, as well as other
cryptocurrencies which he expects to do well in the future. BTC
trading north of $37,000 | Source: BTCUSD on TradingView.com
Scaramucci pointed to the fact that a lot of investors say that
they are invested in the long-term but yet are fazed by what
happens in the short term. “Everyone is a long-term investor until
you have short-term losses, and then you start freaking out,” said
the CEO. “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,” he
advised investors. Forget The Dollar, BTC Is BTC Currently, the
value of bitcoin is derived from how much it sells when compared to
the dollar. This is how investors measure their holdings 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 just look at the digital asset for what it is;
bitcoin. For the CEO, BTC is BTC and the dollar is the dollar.
Related Reading | Bitcoin Whales Take Advantage Of Market
Crash To Gobble Up Millions In BTC He revealed that he tells
clients of his investment firm SkyBridge Capital to invest in
cryptocurrencies as long as they size it appropriately. “I don’t
want my clients to miss this. I’m telling them to size it
appropriately — that’s a 1% to 3% allocation, 1% to 4% at cost.”
This is because the CEO believes that cryptocurrencies like bitcoin
are inevitably going to be a part of the future. Scaramucci also
advised investors who get overly excited when they are investing in
the market. He supports the idea of putting a small percentage of
an investment portfolio into cryptocurrencies but cautioned against
trying to lever digital assets like bitcoin due to its high
volatility and the uncertainty that still clouds the digital asset.
“It would be like levering Amazon back in 1998, ’99 and 2000,” the
CEO warned. Featured image from Vanity Fair, chart from
TradingView.com
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