According to Mark Mobius, the price of bitcoin could drop by 40% to $10,000 in 2023

Mark Mobius predicts bitcoin could crash 40% to $10,000 in 2023

Veteran investor Mark Mobius warned on Thursday that the price of bitcoin may drop to $10,000, a drop of more than 40% from present levels.

Bitcoin is "not far away" from $10,000, according to the co-founder of Mobius Capital Partners, who correctly predicted the decline to $20,000 this year when it broke through the technical support levels of $18,000 and $17,000.

While Mobius anticipates bitcoin to remain around its current $17,000 level, he added that the drop to $10,000 may occur in 2023.

The investor, who rose to prominence at Franklin Templeton Investments, told that stricter monetary policy from the U.S. Federal Reserve.

Mobius explained via email that as interest rates rise, it becomes less appealing to hold or purchase Bitcoin or other cryptocurrencies because interest is not earned simply by keeping the coin in your possession.

"Of course, there have been many offers of 5% or greater interest rates for cryptocurrency deposits, but many of those businesses have failed in part because to FTX. People start to fear retaining the cryptocurrency coin in order to earn interest as a result of those mounting losses.

Numerous businesses have offered investors exorbitant interest rates in exchange for storing their cryptocurrency with them. These businesses frequently relied on lending users' cryptocurrency to others at exorbitant interest rates and then sharing the profits with users. But many of these businesses failed earlier this year as cryptocurrency prices fell and liquidity disappeared.

Celsius is one such business that declared bankruptcy in July. A different one is BlockFi, which had a substantial exposure to the defunct exchange FTX.

Mobius added that the Fed's "printing machine working over time so that money supply in USD rose by 40% plus in the last few years" was a direct cause of the cryptocurrency boom.