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Bitcoin Likely to Break Down Lower in the Market - Mark Mobius

source-logo  cryptoknowmics.com 28 July 2021 05:30, UTC

Despite its recent rebound, emerging markets specialist Mark Mobius just told Bloomberg that Bitcoin would break down lower. 

Bitcoin Will Break Lower, Says Mark Mobius

During a TV interview with BNN Bloomberg on Tuesday, the founder of Mobius Capital Partners stated his concern, saying that Bitcoin would break lower at this point of the game.

“In this atmosphere, I don’t see how excitement for cryptocurrencies would increase.”

Mobius anticipates governments cracking down on the business “more and more.”

He emphasizes the increasing regulatory pressures that big bitcoin exchanges are now experiencing.

Binance and FTX have both decreased their leverage limits to 20x in the last week. Earlier today, the company also set severe withdrawal limits for consumers with rudimentary account authentication.

Binance CEO Changpeng Zhao stated that the decision was made to guarantee that the exchange complies with regulatory requirements.

Furthermore, Zhao stated that he would be prepared to stand down if Binance could find someone with solid compliance experience who did a better job than him.

Bitcoin’s Fundamental Worth Is Being Questioned

Mobius argues that Bitcoin’s trust will soon begin to erode because, unlike gold, it lacks real qualities:

“I can wear a gold watch, but not Bitcoin.”

Mobius Capital Partners’ founder says he would be “extremely wary” about firms like Tesla who have Bitcoin on their balance sheet:

“I’m shocked Tesla is doing this, and I’d be wary of investing in such a business.”

Bitcoin Falls After Rising Due To Amazon Speculation

Bitcoin surpassed the US$40,000 mark earlier this week on rumors that e-commerce behemoth Amazon.com Inc. was looking to fill a post in digital currency and blockchain strategy.

The cryptocurrency’s value plummeted immediately after Amazon refuted rumors that it might accept Bitcoin as payment this year.

Despite the excitement generated by high-profile initiatives such as Tesla Inc.’s decision to include Bitcoin on its balance sheet, investors who have held onto the cryptocurrency for the previous few years have had to deal with substantial price volatility.

“With Bitcoin, you’re actually expecting that someone else will join in and drive the price up — so it’s pretty speculative,” Mobius said.

cryptoknowmics.com