Robert Steinadler, 6 months ago

Summer sale: SkyBridge kept buying BTC and ETH during the crash

Buy when there is blood in the streets even if it’s your own. That is one of the most iconic proverbs that is told to beginners when they start trading. It is often used to encourage investors to act when the market is going through a difficult time since the biggest opportunity is often created when asset prices are exploring new lows. It is hard to stick to that plan and invest while uncertainty is spreading among investors and within many crypto communities.

But there are also professionals active in the market and they are pretty outspoken about what they do and why they are still seeking exposure to an investment in crypto.

Why is there a crash?

Anthony Sacaramucci is one of the more famous and outspoken investors in Bitcoin and the broader crypto economy. Skybridge Capital, his investment firm, kept buying during the recent sell-off.

The reason why the market kept crashing down since the beginning of this week is the fact that US inflation printed a new record in May. Most investors believe that the Fed has to increase interest rate faster and expect a hike of at least 75 basis points. Another factor that destroyed the trust of many investors is the fact that Celsius had to freeze customer funds to ensure liquidity. Should the lending service face bankruptcy, the market could face the second major incident after Terra within a very short time.

SkyBridge kept on buying

SkyBridge Capital as well as Sacaramucci weren’t fazed one bit by the recent crash and the lingering danger that the Fed will melt down the market. In an interview with CNBC, he revealed the reason behind his decision and his strategy.

Instead of heavy exposure, he suggested that clients should invest, and between 1 % and 3 % of their portfolio should consist of top cryptos like Bitcoin and Ethereum. According to his theory Bitcoin as well as Ethereum are becoming a part of the future that might develop over a longer period of time the same way as Amazon stock did several years ago.

He also compared the current crash with the bursting dot-com bubble in 2000. This is why he believes that assets like Bitcoin could still rise from the ashes and create a great opportunity for investors who are willing to take the risk and wait patiently for the market to recover. However, he also warned that the risks that are involved currently are not to be underestimated.

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