Mark Morbius, fund manager and founder of Morbius Capital Partners LLP
Mark Morbius, fund manager and founder of Morbius Capital Partners LLP, expects bitcoin to drop 40 percent and drop to $10,000. The experienced investor had previously accurately predicted Bitcoin’s drop to $20,000 this year and now says that the world’s largest cryptocurrency is not far from dropping to $10,000 after breaking the $18,000 and $17,000 technical support levels.
The veteran investor expects bitcoin to trade at current levels of $17,000 and drop to $10,000 in 2023. He’s not the first person to forecast bitcoin as low as $10,000. Last year, Alexander Carroll, a professor at the University of Sussex, predicted that bitcoin would drop to as low as $10,000 and advised investors to withdraw their funds. The only difference between both predictions is that the professor predicted this Bitcoin drop in 2022.
Supporting Mark Morbius’ forecasts were factors such as higher interest rates and tighter monetary policy from the US Federal Reserve. “As interest rates go up, the appeal of owning or buying bitcoin or other cryptocurrency becomes less attractive because simply holding the currency does not pay interest. Of course, there have been a number of offers of interest rates of 5% or higher for crypto deposits, but many of those companies Those offering such prices fell in part as a result of FTX. So, as these losses mounted, people became afraid to hold cryptocurrency to earn interest,” wrote Mark Morbius.
Companies that have been offering a lot of interest in cryptocurrency “savings” and “investments” have crashed along with cryptocurrency prices this year alone. These companies relied on lending the cryptocurrency left in their care to others at a high interest rate and splitting the winnings with the users. Some of the cryptocurrency lenders include Celsius which filed for bankruptcy in July, voyager which also filed for bankruptcy in July, and BlockFi which recently collapsed due to its association with FTX.
According to Marc Morbius, the boom in the cryptocurrency industry had a direct correlation with “the federal printer working overtime so that the US dollar money supply has increased by 40% in the past few years.”
“So there was a lot of liquidity to speculate on cryptocurrencies,” he added. He went on to explain that “now that the Fed is withdrawing that money, it’s getting more and more difficult for people to be able to play the market.”
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