Mark Mobius, a renowned investor and current CEO of Mobius Capital Partners, has announced a $10,000 price goal for Bitcoin. He is now persuaded that Bitcoin will fluctuate at about $17,000 shortly before falling as high as 40% in 2023. Bitcoin at $10,000 would drop back to its level from the way it used to be in October 2020, effectively wiping away all the wealth generated by Bitcoin during the prior bull market.
Typically, Mobius is regarded as “the godfather of emerging markets” and is accustomed to taking risks. While working at Franklin Templeton Investments for 30 years, he helped establish emerging markets as an asset class, so he is well aware of the risks associated with unpredictable, untested, and uncontrolled markets. Is it time to sell now before the bottom comes out if Mobius predicts that Bitcoin will eventually reach a $10,000 price target?
Bitcoin may reach $10,000 for two reasons.
According to Mobius, there are several compelling reasons why the price of Bitcoin could decline by as much as 40% to $10,000 in the upcoming year. Mobius cites inflation and the Governmental Reserve’s “printing machine” as the main and greatest crucial reasons. People were able to speculate freely on cryptocurrency during the crypto boom since money was cheap to get by. However, this circumstance will no longer exist as a result of the Fed’s tightening of monetary policy and increasing interest rates.
Secondly, Mobius points out that Bitcoin has kept breaking through technical resistance levels, perhaps indicating weakness. Every time one of these support levels is breached by Bitcoin, the subsequent support level will be significantly simpler to reach. For instance, Mobius predicted that Bitcoin will drop to $20,000 back in May when it was valued at $28,000. Bitcoin is currently challenging the $16,000 support level after breaking past the $20,000 support level. That’s anyone’s judgement from there, although $10,000 appears most realistic given that it was that low before Bitcoin experienced a spectacular bull market rally.
Cryptocurrency markets vs. Emerging markets
Mark Mobius undoubtedly has some valid points. But he also sees the cryptocurrency markets through the lens of developing markets. Mobius essentially supervised the development of the emerging markets fund earlier in the middle of the 1980s, and he’s been deeply engaged in emerging markets since then. From where he is standing, what is happening with cryptocurrency right now must be quite similar to what has occurred in emerging economies across the last 40 years.
Mobius has discussed how difficult it was to first persuade investors to venture into non-Western economies due to their perception of risk. Getting money in and out of emerging markets was difficult in the pre-internet age. Companies in these nations lacked any understanding of corporate governance and employed crude risk management systems. Without regard for investors, executives were only concerned with enriching the affluent. This implied that financial contagion may erupt overnight when a huge political risk was added.
Sounds recognizable? This resembles the current state of the cryptocurrency market almost identically. We can see how a lack of market control has resulted in some questionable, even illegal, conduct. We are witnessing how quickly a crisis may escalate if risk control and corporate governance are lacking in place. Additionally, we are witnessing how many cryptocurrency founders’ desire for fast wealth creates disincentives for long-term success.
But what’s this? In the end, the emerging markets infrastructure class proved to be one of Wall Street’s most significant ideas. We have witnessed how, over the past 40 years, globalization has evolved into one of the most potent investment theories ever. We’ve seen how countries that were once derided as “third world” finally became powerful economic superpowers. Furthermore, from Asia to Latin America, we have observed improvements in living standards.
Is Bitcoin a good investment?
All of this gives me confidence that cryptocurrency will someday develop into a similar asset class. It is what countries like El Salvador, the first country to ever make bitcoin legal currency, are currently attempting to achieve as well as what the Bitcoin pioneers have long promised will happen. Yes, greater regulation is required for cryptocurrencies. Yes, crypto requires someone to check the financial records at organizations like FTX. However, it’s difficult to miss the same potential for cryptocurrency that Mobius once saw in developing economies. Because of this, I’m sure that $10,000 would be Bitcoin’s lowest price.
Ken Emmanuel is a Blockchain Content writer, a Web3 Enthusiast and a Social Media Management Strategist, he likes writing educative contents to help people gain more knowledge and get inspired. The growth of any organization he work with is always his priority. He is a Geographer by profession and loves reading.