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Mark Mobius, the founder of Mobius Capital Partners, has admitted his “fears” about the fall in the price of Bitcoin. The Investment Manager for Emerging Markets assumes that Bitcoin rates could have a negative effect on tech stocks in particular. Speaking to Bloomberg Markets, Mobius said that the relationship between Bitcoin values and tech markets is very close and added:
Bitcoin’s decline may hit tech stocks very badly
According to Mobius, the real issue in the financial markets is the technological industry, as he claimed that those firms “have little profits and have been driven up sharply.” In addition to expressing his view, the founder asked investors to keep a tight eye on the partnership. He also said that if bitcoin rates go down, “tech markets are going to be really badly affected.”
The experienced trader admitted retaining gold even though the market has seen large outflows from the gold ETFs. Mobius believes that Bitcoin and Gold are both tied to each other, which is one of the reasons that the precious metal was down. He said:
I think there again is a relationship between Bitcoin and gold because you talk to all these people and they say gee Bitcoin is like gold as a store of value. So I think there is some relationship between these two. And one of the reasons why gold is down otherwise is no good reason why gold should be down at this stage.
Mobius also said it addressed the volatile price of Bitcoin and wished it would “keep up.” But he immediately added that he was “not expecting or hoping” that Bitcoin was going down in price but “hopes” Bitcoin’s price “was going up so tech markets would then be able to revive.”
Meanwhile, Bitcoin has been on a surge with a 3.7 percent price rise over the last 24 hours, with the crypto commodity closing at $56,376 at press time, and maybe inching to its latest ATH of more than $58,000.