Seasoned investor and co-founder of Mobius Capital Partners Mark Mobius is issuing a warning to Bitcoin (BTC) traders that devastating losses still await the leading crypto asset.
In a new interview with Financial News London, Mobius warns against “buying the dip,” saying that a meltdown taking the top digital asset by market cap all the way down to $10,000 is on the horizon.
Mobius says that while the “buy the dip” strategy may have worked for traders in the past, it’s not a good idea this time around. However, he notes there could be a slight upswing after Bitcoin drops to the $20,000 mark before it once again resumes its plummet to $10,000.
“[Buying the dip] will not work this time until Bitcoin hits $20,000, from where there might be a bounce but then the next target will be $10,000.”
The latest crypto market crash, led by the collapse of stablecoin issuer and Ethereum competitor Terra (LUNA), saw Bitcoin drop from a seven-day high of $36,242 to $26,910, a 25.7% decrease.
Previously, Mobius had warned traders that crypto assets are “not investments” or good hedges against inflation, instead preferring stocks as a means to counter the devaluation of fiat currency. Furthermore, the veteran investor referred to Bitcoin and digital assets as a “religion.”
“Stocks definitely are the answer because the devaluation of currencies is not going to go away, which means inflation is going to continue at a high rate going forward. Don’t forget, the US money supply has gone up by over 30%.
The Bitcoin situation and the cryptocurrency situation is religion. It’s not an investment, it’s a religion. They believe in it. People think they’re getting richer, and that’s fine as long as the music continues to play.”
Check Latest News Headlines
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/klyaksun