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Veteran investor Mark Mobius, founder of Mobius Capital, warned cryptocurrency traders against using a “buy on fall” strategy. He expects the bitcoin price to fall further with some temporary relief at the $20K level.
Mark Mobius’ warning and his bitcoin price forecast
Mobius Capital Partners founder Mark Mobius, in an interview with Financial News on Friday, warned crypto traders against buying on the downside. He also shared his price forecast and future prospects for bitcoin.
Before starting his own company, Mobius was executive chairman of Templeton Emerging Markets Group. He joined Templeton in 1987, where he managed over $50 billion in emerging markets portfolios.
While acknowledging that some crypto traders had previously had success using a “buy on fall” strategy, he stressed that this was not a strategy that would pay off while the market still had room to fall. Commenting on buying bitcoin on the fall, the 85-year-old Mobius Capital founder told the publication:
This time it won’t work until bitcoin reaches $20,000, after which there may be a bounce, but the next target is $10,000.
Some people have voiced similar warnings on social media, especially after the collapse of terrausd (UST) and terra (LUNA). UST lost its peg to the U.S. dollar and now trades at $0.11, while LUNA is almost worthless.
“Terra Luna is a perfect example of why you shouldn’t always ‘buy on the downside,'” tweeted “gold bug” Peter Schiff on Thursday. “Luna was down 98% yesterday. If you bought into that drop thinking the collapse created a great buying opportunity, you lost 99.3% today. It can happen to any cryptocurrency.”
However, many bitcoin investors don’t buy into the fall to catch the market and make a quick profit; they plan to hold their BTC for the long term. Those who believe the price of cryptocurrency will reach $100,000 this year, for example, are happy to enter the market at any price below that target.
Mobius has long been a bitcoin skeptic. In October, he told the news outlet that the cryptocurrency “could really blow up,” stressing that it was a risk that central banks “should pay attention to.”
In November, he advised people not to consider cryptocurrency as an investment vehicle. “It’s a medium for speculation and entertainment. But at the end of the day you have to go back to stocks,” he said.
Image Credits: Shutterstock, Pixabay, Wiki Commons
