In a recent interview with the Financial News, well-known emerging markets fund manager Mark Mobius predicted that the price of Bitcoin could collapse all the way back to the $10,000 level.
Mobius said that the cryptocurrency meltdown is far from over, despite the recent relief rally.
Earlier today, the world’s largest cryptocurrency rallied to an intraday high of $30,960 on the Bitstamp exchange after tumbling to $25,401, the lowest level since December 2020.
The collapse of the Terra cryptocurrency was a black swan event that exerted severe selling pressure on the market. While the LUNA token kept plunging all the way to zero, the market partially recovered from the initial contagion.
Those traders who caught the bottom of the recent Bitcoin correction managed to pocket impressive gains of more than 20% in less than a day.
Yet, Mobius warned against buying dips in a bear market. The legendary investor believes that traders will end up catching a falling knife.
The veteran emerging markets investor says that Bitcoin will only be a buy at $20,000. He expects a short-lived bounce to occur once the top cryptocurrency retraces to the aforementioned level. That said, Mobius does not believe that any sort of recovery will be sustainable.
Last November, the American-born German investor correctly predicted that Bitcoin would be “in real trouble” just days before the cryptocurrency hit its all-time high of $69,044.
The largest cryptocurrency is currently down 55.38% from its recent peak.
In the past, Mobius said that the cryptocurrency market was like “a casino operation.”