Famous market investor and co-founder of Mobius Capital Partners, Mark Mobius believes that the upcoming actions of the US Federal Reserve, the Fed, can bring the cryptocurrency market down. In an interview with Kitco News, Mobius said he expects financial markets, particularly cryptocurrencies like Bitcoin and Ethereum, to fall if the Federal Reserve decides to rapidly reduce asset purchases.
Mark Mobius: Bitcoin and Ethereum may drop
In a recent interview, Mobius talked about the US monetary policy and said, “Actually, they are gradually reducing their bond purchases in any case, but if it stops quickly and suddenly, then you can have a real border crisis. It can obviously affect the markets because people will look for the financing then, but it won’t be there. The money will not be available,” he said. Mobius said he thinks cryptocurrencies will be badly affected if that happens.
The famous name said, “You will see that this situation will affect the psychology of many people, especially young people who invest a lot of money in cryptocurrencies. Then, as usual, you will see a decrease in the stock market,” he said. The investor says the cryptocurrency class will likely be the first domino to fall as the Federal Reserve begins to contract financially and fiscal stimulus dries up.
“These cryptocurrencies need more inflows to maintain their value. In other words, more people need to come to the arena who believe that the value of these cryptocurrencies will increase. As usual, the stock market does the same, but cryptocurrencies are particularly vulnerable to the scourge of extra cash. ”
Mobius also warns of “tech bubble”
Mobius says the tech industry is also vulnerable to an “asset bubble burst” and adds: “I’m talking about tech companies that can’t make money… It’s hopefully supported by people who hope there will be another Amazon or another Apple… They will probably disappear first. ”
As we have reported as , Mark Mobius has previously made comments on BTC and the crypto market. He said that the reason behind the decline of gold in March was Bitcoin.