Bitcoin and Ethereum have both dropped by almost 20 percent in the last seven days, with bitcoin selling near $30,000 and Ethereum near $2,000, respectively. Bitcoin and other cryptocurrencies have had a tumultuous week, partly due to macroeconomic uncertainty.
The largest cryptocurrency by market cap has been fluctuating between $26,000 and $32,000 this week. On Friday, most cryptocurrencies rose as the bearish sentiment faded. Although technical indicators imply limited upside from here, it appears as if short-term buyers have returned from the sidelines.
Mark Mobius, a well-known emerging markets fund manager, projected that the price of Bitcoin may fall all the way back to $10,000 in a recent interview with the Financial News. Despite the recent relief rally, Mobius believes the bitcoin catastrophe is far from finished.
After plunging to $25,401, the lowest level since December 2020, the world’s largest cryptocurrency rose to an intraday high of $30,960 on the Bitstamp platform earlier today.
Black Swan Occurrence
The collapse of the Terra cryptocurrency was a black swan occurrence that put the market under a lot of selling pressure. The market somewhat recovered from the first contagion while the LUNA token continued to fall all the way to zero.
Those that caught the bottom of the last Bitcoin correction were able to profit by more than 20% in less than a day. Mobius, on the other hand, advised against buying dips in a bear market. Traders will grab a falling knife, according to the investor.
Bitcoin will only be a buy at $20,000, according to the seasoned emerging markets investor. Once the top cryptocurrency retraces to the aforementioned level, he expects a short-term rally. Mobius, on the other hand, does not expect that any rebound will be long-term.
Just days before Bitcoin achieved an all-time high of $69,044, the American-born German investor correctly forecasted that the cryptocurrency would be “in real trouble.”