Veteran investor Mark Mobius, founder of Mobius Capital, warned cryptocurrency traders against using a “buy pullback strategy.” He expects Bitcoin to fall further with some temporary relief at $20K.
Mark Mobius Warning and His Bitcoin Price Prediction
Mark Mobius, founder of Mobius Capital Partners, warned cryptocurrency traders not to buy the dip in an interview with Financial News Friday. He also shared his Bitcoin price prediction and his future expectations.
Prior to founding his own company, Moebius was CEO of Templeton Emerging Markets Group. He joined Templeton in 1987 managing more than $50 billion in emerging market portfolios.
While acknowledging that some cryptocurrency traders have previously succeeded in using the “buy pullback strategy,” he emphasized that it is not a strategy that will pay off while the market still has a path to fall. Commenting specifically on buying plummeting bitcoin, the 85-year-old founder of Mobius Capital told the publication:
It won’t work this time until bitcoin reaches $20,000 as there may be a bounce but then the next target will be $10,000.
Some people have expressed similar warnings on social media, especially after the collapse of Terrausd (UST) and Terra (LUNA). UST has lost its currency peg to the US dollar and is currently trading at $0.11 while LUNA is approaching in value.
Gold expert Peter Schiff tweeted Thursday, “Terra Luna provides an excellent example of why you don’t always ‘buy the plunge’.” Yesterday Luna was down 98%. If you bought this dip thinking the crash created a huge buying opportunity, you lost 99.3% today. This can happen to any cryptocurrency.”
However, many bitcoin investors are not buying the timely dip in the market to make a quick profit; They plan to hold BTC for the long term. Those who believe that the price of the cryptocurrency will reach $100,000 this year, for example, are happy to enter any price below that target.
Mobius has always been skeptical of Bitcoin. In October, he told the news outlet that the cryptocurrency “could really explode,” emphasizing that it is a risk that central banks should be aware of.
He advised people in November not to look at cryptocurrency as an investment. “It’s a way to speculate and have fun. But then you have to go back to stocks at the end of the day,” he said.
What do you think of Mark Moebius’ warning? Let us know in the comments section below.
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