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Renowned investor and co-founder of Mobius Capital Partners Mark Mobius says that the price of Bitcoin is at risk of breaking “lower” as more regulation causes enthusiasm for crypto to fade.
In an interview with Bloomberg, Mobius predicts that an increasing amount of government attention comes down hard on the crypto sector.
“I’m afraid it’s [Bitcoin] going to break lower. I hate to say this because I have a lot of friends in that space. But I don’t see how the enthusiasm about cryptocurrencies can grow in this environment because you’re going to see governments more and more cracking down in this area.
And you can see the Bitcoin companies that do the trading are beginning to be hit as well, which is why probably a lot of them are rushing to the market in order to catch the opportunity.”
The veteran investor says that faith in cryptocurrencies, which he believes is the determining factor for many speculators who buy into Bitcoin, is also likely to wane.
“Right now there’s so much money sloshing around, particularly in the US. People are getting checks in the mail from the government. They’re adding to their bank accounts. They don’t know what to do with their money.
And when they hear these rumors there’s a lot of speculation about Bitcoin and you hear about the billionaires that have been made with Bitcoin and the other cryptocurrencies, they get excited and they go in. It’s a matter of faith.
So what I’m saying is that the faith is probably going to begin to break down.”