What will happen to cryptocurrencies

The hedge fund was founded by former American politician Anthony Scaramucci back in 2005. On the eve of the annual SkyBridge Alternatives conference, he shared some news about his company’s new strategies.

During the COVID-19 pandemic, we made the decision that we needed to review our entire investment portfolio. The world before and after the pandemic are different things. The latter has far more government deficits, far more uncertainty about the growth of markets.


As a reminder, many experts do agree that the investment industry and the global economy as a whole have changed dramatically since the pandemic began. It has severely limited people's mobility, leaving many unable to go to work. Governments responded by printing huge amounts of currency to keep the holes in the economy open. This is now leading to the highest inflation in decades, among other things.

Well, from an investment point of view, assets with limited supply, fixed inflation or even deflationary turnover - i.e. a gradual decline in volumes - are now more valuable. In addition, the inability of governments and bankers to influence the asset is important because it can have unpredictable consequences. Bitcoin and other cryptocurrencies predominantly meet these requirements.


Skybridge Capital founder Anthony Scaramucci

According to Cointelegraph, SkyBridge will focus on innovations and trends that have become key in the post-coronavirus era. Here’s a rejoinder from the fund’s representatives.

We believe the cryptocurrency market has huge potential to grow. Of course, it comes with volatility, but I think we need to stay on that trajectory for three to five years.

SkyBridge business development director John Darcy said the firm’s increased focus on cryptocurrencies had been driven by a “huge drawdown in the credit side” of the firm’s hedge fund managers’ portfolio. The firm is now looking to allocate funds across many crypto assets and blockchain projects. That said, Darcy noted that SkyBridge is “extremely positive about this sector.

What we have decided to do is to invest some of the capital that was previously allocated to credit managers directly into crypto-assets such as Bitcoin and Etherium. But then also allocate capital to crypto asset managers like Multicoin, Polychain or Pantera.

The future is in crypto!

Read also: SkyBridge Capital fund founder urged cryptocurrency investors not to panic. Why?

The opinion of Skybridge’s management coincides with that of a huge number of Bitcoin investors. According to analysts at Glassnode, the HODL Waves instrument has hit an all-time high. As a reminder, HODL Waves displays the volume of coins that haven’t moved in a while. That is, by today, the market has the highest number of crypto-enthusiasts who have not moved their coins at all for more than one year. They hold 64 per cent of all bitcoins in circulation – which is a huge figure.

And since that amount of money doesn't move, it means their owners are probably counting on BTC growth going forward. At the same time, they are not selling the cryptocurrency, which also creates conditions for its potential growth.

The volume of bitcoins that have not moved in a certain period of time

Some traders not only believe, but also place big bets on the growth of the crypto market. Among them, representatives of the Three Arrows Capital fund found an anonymous person who bought 17,350 ETH call options for December 2022 at a strike price of $7,000 per ETH. This means that by December 2022, the investor expects to buy ETH coins for $7,000, which he thinks would be a very good deal at that time.

An unknown trader’s bet

To recap, a call option gives the buyer of an option the right to buy an agreed amount of an asset in the future - in this case, that amount is 17,350 ETH - at a predetermined strike price. The aforementioned investor is confident that Etherium will be trading above $7,000 by December, allowing him to make an instant profit from his options.

Cryptocurrency trader

Call options are bought by traders all the time to reduce the risk of their positions, but the aforementioned purchase was a particularly large one. So it’s not just a risk reduction, but a very risky bet in itself.


We believe that the attention of big players to the coin market is an omen that the digital asset industry will become even more popular in the future. This scenario seems logical, as it is usually the giants who take over a new field and create the infrastructure and make a certain phenomenon more popular. In this case, the fund will offer its clients investments in crypto, which will in any case increase the visibility of digital assets. So in this case we can also expect the "arrival" of new big players into the niche.


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