Anthony Scaramucci advises investors to “remain disciplined” amid a further crypto tumble coupled with threats of higher inflation.
Speaking with Andrew Ross Sorkin of CNBC’s Squawk Box, crypto bull Anthony “The Mooch” Scaramucci today offered some encouraging words to crypto investors. While not playing down the traditional bearish sentiment dominating the cryptocurrency and general market headlines today, Scaramucci told the CNBC anchor that he believes that cryptocurrencies will recover from the “bloodbath” if market participants remain circumspect.
“I am encouraged by the fact that Bitcoin is above 50% of the overall crypto market cap right now, which is another sign that there’s a flight to quality there…I would recommend to people just stay disciplined.”
When asked by Sorkin whether staying disciplined meant buying, the Skybridge founder said the company had purchased bitcoin and Ethereum and owns a private stake in FTX. “FTX is doing well. It’s gaining market share and is a profitable company.” Scaramucci added that the company is ready for any scenario, including a further price dip.
Crypto dips further
It is unclear whether crypto participants will heed Scaramucci’s calls for sobriety during the turmoil. At the time of press, the crypto market cap is $1.04 trillion, according to Coingecko. Bitcoin is down almost 15% to below $24,000 and Ethereum is down 18% in the last 24 hours below $1,200 as many investors backed away from crypto investments, anticipating a recession.
Stocks are also falling. The S&P 500 slid into a bear market at the start of the week, while the Dow Jones Industrial Average is down 13.6% since the beginning of 2022. MicroStrategy, the largest corporate holder of bitcoin, saw its stocks slide by 23%, while Coinbase’s stock price dropped by 10%.
Celsius spooks market
Adding to the mix, Hoboken, N.J.-based crypto lender Celsius Network paused withdrawals, swaps, and transfers between accounts earlier today, citing unfavorable market conditions, sparking liquidity concerns. Liquidity is significant in Celsius’ case, as the company offers a relatively high annual percentage yield (similar to interest at a traditional bank) of up to 17% on deposits, according to the company’s website. Investors fear an extended pause could cause further ripple effects in the crypto market.
Terraform Labs offered investors high percentage yields of up to 20% before the TerraUSD coin collapsed a little over a month ago, the effects of which are still being felt.
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