Mark Mobius, renowned emerging markets investor and co-founder of Mobius Capital Partners, believes upcoming actions from the Federal Reserve could drag down the cryptocurrency market.
In an interview with Kitco News, Mobius says he expects financial markets, particularly cryptocurrencies such as Bitcoin and Ethereum, to drop if the Federal Reserve decides to rapidly taper asset purchases.
“They actually are doing a little bit of tapering, in any case, but if it’s done rapidly and suddenly, then you could have a real tantrum. It could have the markets affected dramatically, because people will then be looking for the finance, but it’s not there. The money will not be available.
I think you’re going to see, when that happens, the cryptocurrencies will be hit badly, and that will affect the psychology of many, many people, particularly young people who invested a lot of money in cryptocurrencies. And then of course, you’ll see a decline in the stock market.”