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.
