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Bitcoin prices exchanged around $16,900 during the Asian trading session, up approximately 2.4 percent in the past seven days.
After a decline of over 60 percent in 2022, Bitcoin price could crash beyond the current levels to $10k in 2023, according to co-founder of Mobius Capital Partners Mark Mobius. While speaking in an interview with CNBC, Mobius said that Bitcoin price is not far from $10k after breaking the major support level between $17k and $18k.
Notably, Mobius predicted the Bitcoin crash toward $20k earlier this year when the instrument traded at $30k. With the FTX collapse, Mobius believes more capitulation in the cryptocurrency market will likely come next year. Additionally, Mobius said that the higher interest rate lures investors away from the risky digital market.
“With higher interest rates, the attraction of holding or buying Bitcoin or other cryptocurrencies becomes less attractive since just holding the coin does not pay interest,” Mobius said.
The ongoing bear market has been likened to the early 2000 when most internet stocks plummeted. Nonetheless, as with the internet stocks afterward, Bitcoin price is expected to scale higher in the coming years. According to Ark Investment’s Cathy Wood, Bitcoin will tap into a $28 trillion global market that should see the underlying value trade above $1 million.
As such, global regulators are coordinating to tame the grey area that the crypto market has been operating in the past decade. Among them is regulating centralized exchanges to avoid rug pulls like FTX and Alameda.
“Of course, there have been a number of offerings of 5% or higher interest rates for crypto deposits, but many of those companies offering such rates have gone bust partly as a result of FTX. So as those losses mount people become scared of holding the crypto coin in order to earn interest,” Mobius added.
Mobius: Bitcoin Price in 2023 and Market Outlook
According to our latest crypto price oracles, Bitcoin exchanged for around $16,900 during the Asian trading session, up approximately 2.4 percent in the past seven days. With a market capitalization of approximately $326.59 billion, the Bitcoin market reported a 24-hour trading volume of about $23.1 billion.
Notably, the total crypto market capitalization stands at around $891 billion, with Bitcoin’s dominance at 36.7 percent.
Bitcoin selling pressure is expected to sustain in the next year as miners offload their treasuries to meet the rising business costs. Moreover, on-chain data indicates Bitcoin miners have been selling freshly minted and old coins in the past few months, which the FTX implosion has expedited.
The Fed’s quantitative easing program that has taken place this year has made it difficult for investors to back crypto assets.
“Now, as the Fed is drawing back that cash, the ability for people to play in the market becomes much more difficult,” Mobius said.