Seasoned investor and co-founder of Mobius Capital Partners Mark Mobius is issuing a warning to Bitcoin (BTC) traders that devastating losses still await the leading crypto asset.
In a new interview with Financial News London, Mobius warns against “buying the dip,” saying that a meltdown taking the top digital asset by market cap all the way down to $10,000 is on the horizon.
Mobius says that while the “buy the dip” strategy may have worked for traders in the past, it’s not a good idea this time around. However, he notes there could be a slight upswing after Bitcoin drops to the $20,000 mark before it once again resumes its plummet to $10,000.
“[Buying the dip] will not work this time until Bitcoin hits $20,000, from where there might be a bounce but then the next target will be $10,000.”
The latest crypto market crash, led by the collapse of stablecoin issuer and Ethereum competitor Terra (LUNA), saw Bitcoin drop from a seven-day high of $36,242 to $26,910, a 25.7% decrease.
Previously, Mobius had warned traders that crypto assets are “not investments” or good hedges against inflation, instead preferring stocks as a means to counter the devaluation of fiat currency. Furthermore, the veteran investor referred to Bitcoin and digital assets as a “religion.”
“Stocks definitely are the answer because the devaluation of currencies is not going to go away, which means inflation is going to continue at a high rate going forward. Don’t forget, the US money supply has gone up by over 30%.
The Bitcoin situation and the cryptocurrency situation is religion. It’s not an investment, it’s a religion. They believe in it. People think they’re getting richer, and that’s fine as long as the music continues to play.”
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