Crypto winter is set to deepen, and the price of bitcoin could soon plummet to $10,000, according to legendary investor Mark Mobius.
The billionaire and co-founder of Mobius Capital Partners gave his outlook for the world’s largest cryptocurrency in an interview with Bloomberg on Saturday, with the market still dealing with the aftermath of the fall of FTX, which filed for bankruptcy on November 11.
Since then, bitcoin has fallen 21%, a loss layered on top of the steep sell-off in cryptocurrencies already seen this year. The coin is now down 66% from levels in January – and a fall to $10,000, as Mobius predicts, would mean another 40% plunge from current levels.
Mobius said he thinks the sector is “too dangerous” to invest his own or his clients’ cash, and has been a long-time crypto skeptic. He’s previously called crypto a “religion” rather than an investment, and warned that a sell-off in cryptocurrencies could end up dragging the S&P 500 lower.
Despite the risks and volatility associated with the FTX drama, the industry is likely to survive the fallout, Mobius said, though he added it was “amazing” that bitcoin prices have held up as well as they have so far.
“Crypto is here to stay as there are several investors who still have faith in it,” he told Bloomberg.
Other market commentators have remained bullish on the future of crypto, despite the turmoil and the potential for regulators to crack down harder on the industry. Ark Invest’s Cathie Wood reiterated her bitcoin price target of $1 million over the next decade, and said she believes the current rout would leave bitcoin “smelling like a rose.”