Anthony Scaramucci recommends that investors “remain disciplined” during the current crypto bear market, referring to upcoming inflation.
In a conversation on June 14, 2022 with Andrew Ross Sorkin of CNBC’s Squawk Box, crypto bull Anthony “The Mooch” Scaramucci addressed some encouraging words to the crypto community. Sorkin and Scaramucci talked about Bitcoin, the bear market and the general happenings in the crypto and world markets.
Scaramucci is bullish and believes that cryptocurrencies will recover from the ”bloodbath” if market participants remain prudent.
“I am encouraged by the fact that Bitcoin currently accounts for over 50% of the total crypto market capitalization, which is another sign that there is an escape to quality… I would recommend people to just stay disciplined.”
When Sorkin asked if staying disciplined meant buying, the Skybridge founder replied that the company had bought Bitcoin and Ethereum and owned a private stake in FTX: “FTX is doing well. It is gaining market share and is a profitable company.”
Scaramucci further stated that the company is prepared for any scenario, including a further decline in the share price.
Crypto Prices Continue to Fall
It remains to be seen whether the crypto community will heed Scaramucci’s appeal for prudence during the turmoil. At the time of writing this article, the crypto market capitalization is $1.04 trillion, according to Coingecko.
Bitcoin has fallen by almost 15% to below $ 24,000 in the last 24 hours, and Ethereum by 18% to below $ 1,200, as many investors have withdrawn from the crypto market in anticipation of a recession.
Stock prices are also down. The SP 500 has been in a bear market since the beginning of the year, while the Dow Jones Industrial Average has fallen by 13.6% since the beginning of 2022. Shares of MicroStrategy, the largest company invested in Bitcoin, fell by 23%. In addition, Coinbase’s share price fell by 10%.
A picture of BeInCrypto.com
Celsius could trigger sales
In addition, Hoboken, N.J.-based crypto lending platform Celsius paused withdrawals, swaps and transfers between accounts on June 13, 2022. Celsius cited the “extreme market conditions” and the “guarantee of liquidity” as the reason. Maintaining liquidity is of great importance in the case of Celsius. The company offers a relatively high annual return (similar to the interest rates at a traditional bank) of up to 17% on crypto deposits.
Terra also offered investors a high annual return of up to 20%. Just over a month ago, the stablecoin TerraUSD (UST) and the cryptocurrency Luna crashed. The Terra crash favored the sales at that time. Some investors therefore fear that a longer pause of the Celsius platform could trigger further sell-off waves on the crypto market.