Anthony Scaramucci says he's not buying the dip in bitcoin as he expects more 'sloppiness' and volatility
SkyBridge Capital CEO Anthony Scaramucci has said he's not buying the dip in after it tumbled to near $40,000, saying he expects more volatility and "sloppiness" ahead.
"I think what happens next is just more consolidation," Scaramucci told CNBC Thursday. Consolidation is when an asset trades in a narrow band, often at a lower level than recent highs.
When asked whether he has been buying more bitcoin he said: "No, not really… [SkyBridge Capital is] not really adding any more or taking any away at this point."
"There'll likely be some sloppiness near term," he said. "You're gonna see these volatility waves as people jump on, they get scared, [they] jump off."
Bitcoin has fallen sharply over the last couple of weeks as by expectations that the Federal Reserve is set to raise interest rates in 2022, bringing an end to the ultra-loose monetary policy which boosted assets over the previous two years.
The world's biggest cryptocurrency traded at around $42,195 Friday, having fallen roughly 4% over the previous 24 hours. It was far below its November record high of close to $69,000.
Scaramucci has buying bitcoin when it has fallen in the past, suggesting he's now more worried about the outlook for the token.
The Fed is likely to hike interest rates at least three times this year, according to analysts. So far, those expectations have been particularly bad for assets that are seen as very risky, notably, speculative tech stocks and cryptocurrencies.
Investors have pivoted away from tech and crypto towards stocks that stand to do better as interest rates rise, inflation remains elevated and the economy grows, such as banks and energy companies.
Scaramucci, who briefly served as President Donald Trump's White House communications chief, said he doesn't think bitcoin is a good hedge against inflation, saying it's "too immature."
But he did say bitcoin can lower the cost of sending money around the world, saying this has been beneficial to people in El Salvador, where the digital asset is .
Scaramucci also said he thinks long-term holders of bitcoin are going to be fine, despite the recent volatility. "This is an early-adoption technology story," he said.Source