Skybridge's Scaramucci says two things will prop up demand for bitcoin

Bitcoin fundamentals are “quite good” in the long term due to factors which will “create a demand shock” for the cryptocurrency, Skybridge Capital’s Anthony Scaramucci said Monday.

“Everybody is a long-term investor until they have short term losses,” Scaramucci told CNBC on “Capital Connection.”

Investors may be seeing some losses on bitcoin “but I think long term, the fundamentals are quite good,” he added.

Bitcoin is still more than 60% below its all-time high of almost $69,000 in November.

In June, bitcoin plunged to $17,958, its lowest level since December 2020, according to Coin Metrics data. Bitcoin was last trading at $24,047.28 , down 2.4% in the last 24 hours at 4:57am ET on Monday, CoinDesk data showed.

Scaramucci said he’s optimistic that “two major things have happened on the institutional side” that will likely generate demand for bitcoin.

“Fidelity is allowing for their 401k products to offer bitcoin,” he stated as the first reason, referring to financial services company Fidelity Investments allowing companies to offer employees the option to invest up to 20% of their retirement and savings plan in bitcoin.

Scaramucci cited Blackrock’s offering of a private trust for clients to invest in bitcoin as another reason that will generate tailwinds for the cryptocurrency.

“Blackrock said in addition to teaming up with Coinbase on their Aladdin risk management program… that they’re going to offer a private trust that will give their clients an opportunity to invest directly in bitcoin.”

The investment management firm, which has about $8.5 trillion in assets under management, recently announced a partnership with Coinbase that allows its institutional clients to buy crypto, starting with bitcoin.

Ethereum’s merge

Scaramucci said ethereum‘s upcoming so-called “merge” is a reason why the decentralized blockchain-based network went up in value.

“Ethereum is about to merge and reduce their gas fees and transactions fees. And that’s one of the reasons why ethereum is up about 70 plus percent over the last five and a half weeks.”

Ethereum, the second-largest cryptocurrency by market value, ran a final dress rehearsal last week ahead of a long-awaited upgrade that’s been billed as one of the most important events in crypto’s history.

Ether, which is used to power the ethereum blockchain network, soared to a two-month high after the final dry run for the merge. The token was last trading at $1,905.40, down 4.7% in the last 24 hours, according to CoinDesk.

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