Mark Morbius, fund manager and founder of Morbius Capital Partners LLP
Bitcoin could plunge as low as 40 percent and crash to $10,000, Mark Morbius, fund manager and founder of Morbius Capital Partners LLP predicts. The experienced investor had previously and accurately predicted Bitcoin’s drop to $20,000 this year and is now saying that the world’s biggest cryptocurrency is not far away from declining to $10,000 after breaking technical support levels of $18,000 and $17,000.
The veteran investor expects Bitcoin to trade at around its current levels of $17,000 and drop to $10,000 in 2023. He is not the first person to predict Bitcoin falling to as low as $10,000. Last year, University of Sussex professor, Alexandar Carol predicted that Bitcoin would drop to as low as $10,000 and advised investors to pull out their money. The only difference between both predictions is that the professor predicted this decline for Bitcoin in 2022.
Backing Mark Morbius’ prediction were factors such as rising interest rates and a generally tighter monetary policy from the US Federal Reserve. “With higher interest rates, the attraction of holding or buying Bitcoin or other cryptocurrencies becomes less attractive since just holding the coin does not pay interest. Of course, there have been a number of offerings of 5% or higher interest rates for crypto deposits but many of those companies offering such rates have gone bust partly as a result of FTX. So as those losses mount people become scared of holding the crypto coin in order to earn interest,” Mark Morbius wrote.
Companies that had been offering very high interest for cryptocurrency ‘savings’ and ‘investments’ have crashed alongside crypto prices this year alone. These companies had relied on lending crypto left in their care to others at a high-interest rate and splitting the gains with users. Some of these crypto lenders include Celsius and 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 Mark Morbius, the boom which the crypto industry experienced had a direct correlation with the Fed’s “printing machine working overtime so that money supply in USD rose by 40% plus in the last few years.”
“So there was abundant cash to speculate on crypto coin”, he added. He went on to explain that “Now as the Fed is drawing back that cash the ability for people to play in the market becomes much more difficult.”