Legendary investor Mark Mobius believes Bitcoin bottom is yet to come
- Billionaire investor Mark Mobius has predicted that Bitcoin has not reached a bottom yet, investors are still buying the dips.
- End of the bear market has not arrived, Mobius considers Bitcoin a leading indicator for the stock market.
- Official Chinese national news outlet warned investors that Bitcoin price could go to zero to dissuade crypto investment.
Mark Mobius, a billionaire investor, believes investors are still buying dips on Bitcoin, implying the bottom for the main cryptocurrency is yet to come. The analyst believes Bitcoin is a leading indicator of the stock market. Meanwhile, the Chinese government has taken a bearish stand on Bitcoin.
Mark Mobius believes Bitcoin will hit bottom soon
Mark Mobius, a billionaire investor, has predicted Bitcoin bottom has not arrived yet. Mobius told Bloomberg in an interview that,
[Bitcoin investors]...are still talking about buying on dips that means there is a feeling of hope. That also means that we have not reached the bottom of a bear market.
Mobius observed that Bitcoin often correlates to the US stock indices like Nasdaq 100. The broader market correlation started in May 2022, and Mobius considers Bitcoin an interesting indicator of a stock-market bottom. Mobius was quoted as saying:
Cryptocurrencies are a measure of investor sentiment. Bitcoin goes down, the next day the Dow Jones goes down. That’s the pattern you get. That shows that Bitcoin is a leading indicator.
The fact that retail investors are still pouring capital into Bitcoin is what makes Mobius believe BTC is far from the bottom. The billionaire signals that when retail “throws in the towel,” Bitcoin will hit bottom.
CryptoQuant CEO Ki Young Ju argues most Bitcoin cyclic indicators are saying that the bottom is in. The CryptoQuant executive also warns, though, that estimating how long Bitcoin will consolidate in this range is difficult.
Most #Bitcoin cyclic indicators are saying the bottom.
— Ki Young Ju (@ki_young_ju) June 23, 2022
Not sure how long it would take for consolidation in this range tho. Opening a big short position here sounds not a good idea unless you think that $BTC is going to zero.
Live Dashboard https://t.co/HyTvRA6QrW pic.twitter.com/HYbjliokIq
China warns investors Bitcoin is going to zero
An official Chinese national news media outlet warned investors that Bitcoin could go to zero value, dissuading them from pouring capital in the asset. The Economic Daily article reads,
Bitcoin is nothing more than a string of digital codes, and its returns mainly come from buying low and selling high. In the future, once investors’ confidence collapses or when sovereign countries declare Bitcoin illegal, it will return to its original value, which is utterly worthless.
Against China’s bearish outlook on Bitcoin, the Bank of England (BoE) holds opposing views. The bank sees an upside in building wealth in crypto through the bear market. Jon Cunliffe, Deputy Governor of BoE, told Bloomberg that cryptocurrency firms that manage to stay afloat through the bear market could emerge as “dominant players” in the final turn around.
Can Bitcoin price sustain its uptrend?
FXStreet analysts have evaluated the Bitcoin price chart and believe the asset could sweep low to $17,964 level before advancing further. It is likely that Bitcoin resumes its uptrend and sustains it, hitting an upside target of $21,100. For more information on Bitcoin price trend, watch this video:
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
