Veteran investor Mark Mobius, the founder of Mobius Capital, has cautioned cryptocurrency traders against using the “buy the dip strategy.” He expects the price of bitcoin to plunge further with some temporary relief happening at $20K.
Mark Mobius’ Warning and His Bitcoin Price Prediction
Mark Mobius Capital Partners founder, discussed crypto trading with Financial News Friday. In an interview with Financial News Friday, Mark Mobius shared his prediction for the price of bitcoin and what the future holds.
Mobius served as executive chairman at Templeton Emerging Markets Group before he started his company. In 1987, he joined Templeton where he oversaw more than 50 billion dollars in emerging markets portfolios.
While acknowledging that some crypto traders have previously been successful using the “buy the dip strategy,” he stressed that it is not a strategy that would pay off while the market still has some way to fall. Mobius Capital’s founder at 85, said that he had purchased the bitcoin dip.
This will stop until bitcoin reaches $20,000; from there, it might bounce. But then, the target is $10,000.
Many people shared similar concerns on social media after the collapses of terrausd and terra (LUNA). Currently trading at $0.11, UST has lost its peg to the U.S. Dollar and LUNA is almost worthless.
“Terra Luna provides a perfect example of why you shouldn’t always ‘buy the dip,’” Gold bug Peter Schiff tweeted Thursday. “Yesterday Luna was down 98%. You lost 99.3% today if you purchased that dip believing the crash would create a buying opportunity. This can happen to any crypto.”
But many investors in bitcoin aren’t buying dips to profit quickly; instead, they intend to invest their BTC over the long-term. For example, those who think that cryptocurrency prices will rise to $100,000 in the next year are willing to buy at any price below this target.
Mobius was a Bitcoin skeptic for many years. In October, he told the news outlet that cryptocurrency “could really blow up,” emphasizing that it was a risk that central banks “should be paying attention to.”
In November, he advised that people not look at cryptocurrency to be an investment vehicle. “It’s a means to speculate and have fun. But then you’ve got to go back to stocks at the end of the day,” he said.
What do you think about Mark Mobius’ warning? Comment below.
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