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Bitcoin could collapse to $10,000, a 40% slump from current prices, famous investor Mark Mobius told CNBC on Thursday.

The co-founder of Mobius Capital Partners, who correctly called the decline to $20,000 this year, said that bitcoin is “not far away” from $10,000 now that it has broken the technical support levels of $18,000 and $17,000.

While Mobius expects bitcoin to jump back to its current $17,000 level, the move to $10,000 could become a reality in 2023, he said.

“With higher interest rates, the attraction of holding or buying Bitcoin or other cryptocurrencies becomes less attractive since just holding the coin does not pay interest,” Mobius said via email.

“Of course there have been a number of offerings of 5% or higher interest rates for crypto deposits but many of those companies offering such rates have gone bust partly as a result of FTX. So as those losses mount people become scared of holding the crypto coin in order to earn interest.”

There have been numerous companies offering investors sky-high interest rates for parking their crypto with them. But as crypto prices crashed and liquidity dried up earlier this year, many of these companies imploded.

One such company is Celsius which filed for bankruptcy in July. Another is BlockFi, which had large exposure to the now-bankrupt exchange FTX.

“So there was abundant cash to speculate on crypto coin,” Mobius added.

“Now as the Fed is drawing back that cash the ability for people to play in the market becomes much more difficult,” Mobius said.

Mobius has been relatively successful with his bitcoin calls this year. In May, when the price of bitcoin was above $28,000, he told Financial News that bitcoin would likely fall to $20,000, then bounce, but ultimately move down to $10,000.