Legendary investor Mark Mobius predicts that the crypto winter will worsen and that bitcoin’s price will soon fall to $10,000.
In an interview, the millionaire co-founder of Mobius Capital Partners shared his predictions for the biggest cryptocurrency in the world at a time when the market was still reeling from the collapse of FTX, which declared bankruptcy on November 11.
Mark Mobious: Bitcoin is ‘Too Danegrous’ to Invest
Since then, the price of bitcoin has dropped 21%, adding to the year-long sharp sell-off in cryptocurrencies. The coin is currently down 66% from its January highs; a drop to $10,000, as predicted by Mobius, would represent a further 40% decline from current levels.
Mobius, a longtime opponent of cryptocurrencies, said he believes the industry to be too hazardous to put his own money or the money of his clients at risk. In the past, he referred to cryptocurrency as a religion rather than an investment and expressed concern that the S&P 500 would fall if cryptocurrencies see a sell-off.
The industry is likely to withstand the fallout despite the dangers and volatility brought on by the FTX crisis, according to Mobius, who also claimed it was incredible that bitcoin prices have held up so well thus far.
Given the number of investors who still believe in it, he claimed that cryptocurrencies are here to stay. Despite the upheaval and the possibility that regulators would impose stricter regulations on the sector, other market observers are still optimistic about the future of cryptocurrencies.
Cathie Wood of Ark Invest restated her goal of seeing bitcoin reach $1 million over the next ten years and expressed her belief that the current downturn would leave bitcoin smelling sweet.
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FTX Scandal’s Effect to Bitcoin Price
The price of bitcoin has dropped to its lowest level in more than two years as analysts express concern that the continuing FTX bankruptcy procedures may cause a contagion that spreads throughout the cryptocurrency industry.
The price of the most valuable cryptocurrency in the world fell below $16,000 until a minor uptick took it back to $16,500, which is still more than 75% below where it was a year ago.
Experts warn that the Crypto Winter won’t end until the FTX drama is resolved and trust is restored to the space, which has caused the whole cryptocurrency market to decline by roughly $2 trillion in value over the past year.
Attorneys claim that the defunct cryptocurrency exchange was managed as a personal fiefdom by co-founder and former CEO Sam Bankman-Fried, and court documents show that FTX owes its top 50 debtors more than $3 billion.
Customers may not be compensated for their purchases for months, if ever, as bankruptcy hearings started this week and will go through January.
Despite some institutional investors, like Pantera Capital, announcing plans to buy an additional $140 million worth of bitcoin, the ongoing uncertainty may very well result in more price volatility in the long run.
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