Forex in this article
• Mark Mobius remains bearish on Bitcoin
• In 2023, the price of Bitcoin could fall to 10,000 US dollars
• The crypto industry should survive
Because investors are now much more risk averse than they were in 2021, Bitcoin has lost almost 70% of its value in the last twelve months. The cryptocurrency is now far from its all-time high of $65,000, reached in November 2021.
The insolvency of FTX in particular has caused turmoil in the crypto market in recent weeks. The bankruptcy was triggered by doubts about the capitalization of subsidiary Alameda Research, which led to a massive outflow of capital and caught many investors off guard. According to its own statements, the former world’s second-largest crypto exchange owes around US$3.1 billion to the 50 largest creditors alone.
Mark Mobius bearish on bitcoin
If you believe Mark Mobius, who correctly predicted the crash to $20,000 this year, Bitcoin is far from bottoming out. Now that Bitcoin has broken through the $18,000 and $17,000 technical support levels, the oldest, most popular and largest cryptocurrency by market capitalization is “not far off” from $10,000, a respected portfolio manager Franklin Templeton Investments told CNBC “and predicted a drop to this level could occur in 2023. The price of Bitcoin last showed such lows in the spring of 2020, i.e. say after the outbreak of the corona pandemic.
The investment expert based his warning on the sharp rise in interest rates and the generally more restrictive one Monetary Policy the US Federal Reserve. “With higher interest rates, holding or buying bitcoin or other cryptocurrencies becomes less attractive because owning the coin does not earn interest,” Mobius said. In order to combat extremely high inflation, the US monetary authorities had recently decided to raise the key rate four times, by 75 basis points each, an unprecedented series.
Crypto is not going away
In another interview with Bloomberg, the billionaire and co-founder of Mobius Capital Partners was “amazed” that the Bitcoin price has held up so well so far. Nevertheless, he would not invest his own capital or his clients’ funds in digital assets, as he considers it “too dangerous”. Also on this occasion, he declared $10,000 as his next price target for bitcoin.
However, he does not expect cryptocurrencies to disappear completely: “Crypto will stay because there are investors who still believe in it”, he believes.
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