The cryptocurrency market has underperformed over the last two months, and more volatility is expected in the short term.
SkyBridge Capital founder Anthony Scaramucci told CNBC in a recent interview that he believes that the cryptocurrency market will experience more volatility in the coming months.
He was asked about Bitcoin’s decline from the all-time high of $69,000 in November to currently trade around $43k per coin. He said;
“I think what happens next is just more consolidation. “There’ll likely be some sloppiness near term. You’re gonna see these volatility waves as people jump on, they get scared, [they] jump off.”
SkyBridge Capital said he believes the long-term holders will be fine as Bitcoin will resume its rally in the coming months. Scaramucci added that the selling pressure from China will soon be over, and Bitcoin will soon resume its rally.
When asked if he is buying more bitcoins now that the leading cryptocurrency is trading around the $40k region, he answered no, stating that SkyBridge Capital is not really adding any more or taking any away at this point.
The cryptocurrency market has been known to be highly volatile over the past few years. Bitcoin reached an all-time high of $69k in November. However, it is down by more than 35% from the all-time high, and it is now trading above $42k.
The cryptocurrency market has lost $1 trillion over the past two months. In November, the total cryptocurrency market cap reached the $3 trillion level. However, it is now around the $2 trillion mark, thanks to the bearish performance in recent weeks.
The bearish performance also affected Ether and the other major cryptocurrencies. Ether reached an all-time high of $4,800 in November. However, it is now struggling below the $3,300 mark.
Despite the recent bearish trend, market experts are optimistic Bitcoin and the others will rally higher this year.