Mark Mobius, veteran investor and co-founder of Mobius Capital Partners expects the mother of all cryptocurrencies Bitcoin (BTC) to plunge more than 40% through the $10,000 price zone following the digital asset breaking the $18,000 and $17,000 technical support levels.
Mobius also revealed that the prediction he made may come true in 2023 due to the actions of the Federal Reserve (Fed) of the United States (US) which acts to raise interest rates and tighten monetary policy aggressively.
Although there are some crypto exchange companies that offer 5% interest rates for making any crypto deposit, most of those companies have reportedly suffered a collapse following the FTX crisis.
The streak, investors will start to feel worried about holding any of these digital assets after they have seen a number of individuals who have experienced significant losses.
Commenting Mobius again, the Fed that increased the money supply in USD by 40% over the last few years is also the cause of the massive fall in the crypto market.
The Fed has been trying to implement quantitative easing over the past few years to support crypto markets including technology stocks from continuing their downward movement.
In addition, central banks that have acted to tighten their monetary policy this year and have not forgotten also raised interest rates dramatically have caused the crypto market to bleed even more.
In general, the crypto market will be even worse if the Mobius prediction comes true as crypto may see more than US$1.3 trillion wiped off its value this year.
