Mobius Capital founder and veteran investor Mark Mobius has warned cryptocurrency traders against using a “buy dip strategy.” He expects the Bitcoin price to plunge further as the price temporarily eases from $20,000.
Mark Mobius’ Warning and His Bitcoin Price Prediction
Mobius Capital Partners founder Mark Mobius warned cryptocurrency traders about buying deep in an interview with Financial News on Friday. He also shared price predictions and future prospects for Bitcoin.
Prior to starting his own company, Mobius was Chairman of the Templeton Emerging Markets Group. He joined Templeton in 1987 and managed more than $50 billion in emerging markets portfolios.
He acknowledges that some cryptocurrency traders have previously used “deep buy strategies” with success, but emphasized that while the market still has room for some downside, it’s not a strategy that will pay off. The 85-year-old founder of Mobius Capital said:
This time it won’t work until Bitcoin hits $20,000. There may be a bounce here, but the next target is $10,000.
Some have posted similar warnings on social media, especially after the collapse of Terraus (UST) and Terra (LUNA). The UST has lost its peg to the US dollar and is currently trading at $0.11, while LUNA has little value.
“Terra Luna provides a perfect example of why you shouldn’t always buy dips,” Gold bug Peter Schiff tweeted Thursday. “Yesterday Luna was down 98%. If you thought the crash gave you a big buying opportunity and bought that drop, you’re losing 99.3% today. This can happen with any cryptocurrency.”
However, many Bitcoin investors do not buy bear markets in line with the market for a quick profit. they their BTC long term. For example, those who believe that the price of a cryptocurrency will hit $100,000 this year will be happy to break in below that target.
Mobius has long been a Bitcoin skeptic. In October, he told news outlets that cryptocurrencies could “really explode”, emphasizing a risk that central banks “should pay attention to.”
He advised people in November not to view cryptocurrencies as an investment vehicle. “It’s a way to guess and have fun. But at the end of the day, you have to go back to the stock,” he said.
What do you think of Mark Möbius’ warning? Let us know in the comments section below.
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