Skybridge Capital is a $3.5 billion asset management firm. Its founder Anthony Scaramucci has advised the crypto investors on how to survive the crypto bloodbath and the bear market.
The advice on how to survive the crypto industry sell-off and the perceived bitcoin outlook was shared by Scaramucci in an interview with CNBC on Monday.
He stated that we all are in a bloodbath. Additionally, he said that it is his eighth bear market, but he is optimistic that we will survive this as well.
He opined that he is encouraged that despite the crypto crash gloom, bitcoin is above 50% of the entire crypto market cap which is a sign that there is a flight to quality here.
He continued by admitting that Celcius is putting pressure on it just like the LUNA terra fiasco did about six weeks ago.
The cryptocurrency terra (LUNA) and the stablecoin terrausd (UST) imploded in early May while the crypto lending platform, Celsius, announced on Sunday night that it has frozen withdrawals.
However, Scaramucci has some advice for crypto investors on how to survive the current market conditions. He advised the investors to stay unlevered but also keep to their long-term investment disciplines.
He describes it that everybody has their long-term investment plans until short-term losses. Due to the short-term losses, the people set their hair on fire and start running in circles.
He further said his only advice is to only buy quality and stay unlevered and disciplined. He also advised the investors to understand that bear markets happen and are quite natural. He added that the investors should see that bear markets have been happening every one out of five years during the past 120 years.
He further noted that if the investors stay disciplined during such periods they will get themselves very wealthy.
He further disclosed that Skybridge Capital has a private stake in FTX, a cryptocurrency exchange. He said that FTX has been doing great in such a bear market; not only is it gaining market share but is also a profitable company.
On the collapse of LUNA and the stablecoin terrausd (UST), Scaramucci commented that there are over 8,000 cryptocurrencies. Some of them will inevitably fall to zero. He added that LUNA and UST would not be alone in the list as there will be five to fifteen such cryptocurrencies to be used as cases in the future.