It might be too early to call a Bitcoin bottom despite the number one cryptocurrency being massively oversold due to the FTX saga.

According to veteran investor Mark Mobius, Bitcoin could crash to $10k by next year, an almost 41% drop from current levels of $17k. Mr Mobius is the co-founder of Mobius Capital Partners.

US Fed Interest Rate Hikes Paint a Bearish Future for Bitcoin

Mr Mobius added that Bitcoin could continue consolidating at $17k before the drastic move to $10k in 2023.

He explained that such a move down by Bitcoin would likely result from rising interest rates and a continued tightening of monetary policy from the US Federal Reserve.

‘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,’ he cautioned.

‘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.’

The Bitcoin and Crypto Bull Market Was due to the Fed’s Printing Machine

Concerning last year’s bull market that resulted in bitcoin setting an all-time high of $69k, Mr Mobius pointed out that it was a direct result of the Fed’s money printing which resulted in the USD supply rising by more than 40% in a few years.

‘So there was abundant cash to speculate on crypto coin,’ he said. ‘Now, as the Fed is drawing back that cash, the ability for people to play in the market becomes much more difficult.’

$10k Has Been On the Minds of Many Bitcoin Traders and Analysts

Mr Mobius’ forecast of a $10k Bitcoin in 2023 is in line with similar views by Bitcoin and crypto traders who believe that there is still one more round of massive selling left in this bear market.

However, before $10k can be reached by Bitcoin, there lies the $14k macro support zone that also coincides with the 2019 peak value of around $13,970.