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Bitcoin (BTC) undervalued according to Anthony Scaramucci

Mon 22 May 2023 ▪ 3 min of reading ▪ by La Rédaction C.
Getting informed ▪ Invest

Always at the center of speculation, Bitcoin continues to make headlines. Ever since it regained momentum, almost all analysts expect the asset to explode. Perhaps not to the same extent, as some believe Bitcoin is undervalued.

A coin representing a bitcoin

Bitcoin should have been worth at least $40,000 by now…

In April, Bitcoin (BTC) skyrocketed to $30,000 before experiencing a drop. The fact that the asset’s valuation is currently not as high as it was a few weeks ago doesn’t dampen the enthusiasm of investors. Overall, they unanimously believe that the asset will soon reach new highs.

For someone like Anthony Scaramucci, the CEO of the hedge fund SkyBridge Capital, this perspective is evident. He believes that the flagship cryptocurrency is undervalued. In fact, it should have been valued much higher than its current valuation. If it weren’t for external contingencies, Bitcoin would be worth at least 46% more than its current level.

In other words, conservatively speaking, the valuation of Bitcoin should have been $40,000 instead of $27,000 currently! There are multiple reasons explaining this situation, such as fraud, debt, and excessive confidence. These external circumstances caused a significant price drop in the markets.

“A lot of things happened last year. You’re mentioning the Sam Bankman-Fried thing. It was almost like if John Meriwether and Bernie Madoff had a baby, it was Sam Bankman-Fried. You got everything in that story. You got fraud, you got over-leverage, you’ve got excess confidence. And it caused a really big depression in the markets,” explained the CEO in a recent interview.

But be patient, it will be worth much more!

Nevertheless, Anthony Scaramucci believes that Bitcoin is destined to explode. According to him, all it would take is for the asset’s adoption level to double. He estimates that the current adoption rate is around 4% globally, which represents approximately 340 million wallets.

“What we do see is better minor activity, we see wallet expansion… you have 4% global absorption for Bitcoin, about 340 million wallets. That’s roughly where the internet was in 1998. We just have to get from 4% to 8% and you’ll see explosive returns in Bitcoin. So I want people to be patient,” stated the executive.

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La Rédaction C. avatar
La Rédaction C.

L'équipe éditoriale de Cointribune unit ses voix pour s’exprimer sur des thématiques propres aux cryptomonnaies, à l'investissement, au métaverse et aux NFT, tout en s’efforçant de répondre au mieux à vos interrogations.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.