SkyBridge Capital founder Anthony Scaramucci expects the Fed to pause its campaign to raise the federal funds rate until it reaches its 2% inflation target. This will trigger a rally in high-risk assets such as Bitcoin, the investor said in an interview with Bloomberg.
“I really believe the Fed will declare victory at an inflation rate of 4-5%. If I’m right, markets will rebound. There will be a large number of short squeezes in cryptocurrencies, and a revival of risk assets,” said Scaramucci.
The SkyBridge Multi-Advisor Hedge Fund Portfolios Series G portfolio is roughly 10% invested in Bitcoin. According to Scaramucci, even if the cryptocurrency rises, the firm does not intend to increase this share, but is instead ready to “scale into other things”.
In September 2022, FTX acquired 30% of SkyBridge‘s shares. The investment of $45 million was used by the company to buy FTT tokens, which it subsequently sold at a loss of $9.6 million.
“I don’t hide it. I am sure that for people who believe in capitalism and understand the associated risks, it’s important to understand what happened. I won’t risk less in the future because I got burned by Sam Bankman-Fried [Bankman-Fried].”
In his view, the “extreme pessimism” about cryptocurrencies demonstrated by world leaders at the World Economic Forum in Davos is an “extremely optimistic” signal for investors in digital assets.
Analysts expect the central bank to raise rates again by 25 basis points on February 1. The CME Group’s FedWatch tool indicates a 99.8% probability that rates will settle in the 4.5-4.75% range. raise rates by another 25 basis points.
Earlier, Bitcoin’s rally after the Fed’s tightening was also predicted by Galaxy Digital chief Mike Novogratz predicted by Galaxy Digital Mike Novogratz.
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