SkyBridge Slashes Crypto Exposure as Bitcoin Plunges 30% - Strategic Retreat or Panic Move?

Hedge fund giant SkyBridge Capital just made a decisive cut to its digital asset portfolio. The move comes as Bitcoin faces its steepest decline in months—a gut-check 30% slide that's rattling even seasoned crypto veterans.

The Great Unwind

No gentle trimming here. SkyBridge executed a sharp reduction in crypto holdings, signaling a tactical pullback during turbulent market conditions. The firm—led by Anthony Scaramucci—has been one of Wall Street's most vocal crypto advocates, making this portfolio adjustment particularly noteworthy.

Timing the Tumble

That 30% Bitcoin drop isn't just a number—it's a psychological threshold that separates conviction from concern. While retail investors often panic-sell at such moments, institutional players like SkyBridge typically reposition with surgical precision. Their reduction suggests either risk management or a temporary loss of faith in the near-term rebound thesis.

Institutional Calculus

Professional money managers don't make emotional decisions—they run spreadsheets. SkyBridge's move reflects cold, hard portfolio math: rebalancing exposure, locking in whatever gains remained, and preserving dry powder for the next entry point. It's the institutional equivalent of 'living to fight another day.'

The Bigger Picture

One firm's retreat doesn't define a market—but it does raise questions. Is this a canary in the crypto coal mine, or simply prudent risk management during a correction? Traditional finance veterans would call it sensible; crypto maximalists might label it capitulation. The truth probably lies somewhere in between.

Remember: Wall Street embraces volatility when it's going up—and suddenly rediscovers 'risk management principles' when it's going down. SkyBridge's crypto trim shows even true believers have their limits when facing a 30% decline. The question now is whether this move looks like genius or cold feet six months from today.

Firm shifts away from crypto holdings

“Because of the volatility, the macro traders have done better,” Scaramucci said.

SkyBridge’s investment mix demonstrates the strategy shift. By September 30, 2025, the macro allocation of the SkyBridge Opportunity Fund had grown to around 69%. According to regulatory documents, that represents a significant change from March 31, 2025, when digital assets and cryptocurrency accounted for almost 65% of the fund.

Even after prices significantly declined from last year’s peak, Scaramucci continued to have a bullish attitude on bitcoin despite withdrawing from cryptocurrency investments.

“This is more of a timing issue than a direction issue. I don’t think the fundamental story for Bitcoin has changed. If anything, you’ve seen a lot of consolidation,” he said.

Bitcoin experienced dramatic price swings in 2025. The digital currency climbed to a record high above $126,000 in October before crashing in a massive selloff. The decline forced more than $19 billion in liquidations as traders with borrowed money had to close their positions.

Delays in regulations lead to a cautious approach

Bitcoin was down almost 30% from its October peak as of Wednesday, trading close to $88,000. Traders who had anticipated more seamless policy changes from Washington were shaken by the decline.

Scaramucci acknowledged that following last year’s elections, the cryptocurrency market anticipated regulatory developments too quickly. Businesses and investors expected the government’s handling of digital asset regulations to evolve more quickly.

The GENIUS Act, which established a foundation for stablecoins, was passed by the US in July 2025. The Clarity Act, a more comprehensive piece of market structure reform, is still blocked in the Senate. As a result of the delay, exchanges and businesses now have to deal with a slower regulatory timeframe than anticipated.

This regulatory holdup explains why SkyBridge maintains a careful approach despite remaining optimistic about Bitcoin’s future prospects. “I’m cautiously optimistic. I think we’ll have an OK year,” Scaramucci said.

Beyond managing SkyBridge funds, Scaramucci and his son AJ have made personal investments in Bitcoin businesses. Solari Capital, started by AJ Scaramucci, led a $220 million funding round in July for American Bitcoin, a mining and treasury company connected to Trump. The Scaramuccis told Fortune they have invested over $100 million in the firm.

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