SkyBridge Capital CEO Anthony Scaramucci said he will not buy lower bitcoin after it slumped around the $40,000 levels, justifying that he expects more volatility and "lax" in the future.
"I think what's going to happen next is just more reinforcement," Scaramucci told CNBC Thursday. Consolidation is what happens when an asset is trading in a tight range, often below recent highs. When asked if he was buying more bitcoins, he said, "No, not really." Adding that his company will not add more bitcoin at this point."
"There will likely be some slackening in the near term," he said. "You'll see these volatility waves when people jump, and they get scared."
Bitcoin has fallen sharply over the past two weeks as financial markets weighed on expectations that the Federal Reserve will raise interest rates several times in 2022, putting an end to the ultra-loose monetary policy that has boosted assets over the previous two weeks.
Scaramucci previously recommended buying bitcoin when it's low, but he has now changed his strategy indicating that he is now more concerned about the outlook for the token.
A shift in the investment direction
Investors have turned away from technology and digital currencies to stocks that are expected to do better as interest rates rise, inflation continues to rise and the economy grows, such as banks and energy companies.
Scaramucci, who briefly served as head of communications in the White House under President Donald Trump, said he doesn't think bitcoin is a good hedge against inflation, saying it is "too immature".
But he said bitcoin could lower the cost of sending money around the world, saying this has been beneficial for people in El Salvador, where digital assets are legal tender.
Scaramucci also said that he thinks long-term bitcoin holders will do well, despite the recent volatility. "This is a story of early adoption of the technology," he said.
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