Bitcoin could fall more than 40% from current prices, to $10,000. To give the ominous prediction Mark Mobius to CNBC. The co-founder of Mobius Capital Partners, who correctly predicted the drop to $20,000 this year, said Bitcoin is “not far off” from $10,000 now that it has broken the $18,000 and $17,000 technical support levels. “As interest rates rise, the allure of holding or buying Bitcoin or other cryptocurrencies becomes less attractive, as simply holding the coin pays no interest,” Mobius said via email. “Of course there have been several offers of interest rates of 5% or higher for cryptocurrency deposits, but many of these companies that used to offer such rates went bankrupt in part due to FTX. So when losses mount, people get scared to hold cryptocurrencies to earn interest.”
There have been numerous companies offering investors sky-high interest rates for depositing their cryptocurrencies with them. Often these companies relied on lending users’ cryptocurrencies to others at very high interest rates, then splitting the proceeds with the users. But as cryptocurrency prices plummeted and liquidity ran out earlier in the year, many of these companies collapsed. One of them is Celsius, which filed for bankruptcy in July. Another is BlockFi, which had large exposure to the now-fallen FTX exchange.