- Mark Mobius told CNBC the market could face a “major” correction if bitcoin prices crash.
- The Mobius Capital Partners founder said bitcoin’s rally could be a force behind the recent gains in other assets like stocks.
- He said investors who have made large gains off of cryptocurrency are now putting money and even “gambling” in other assets.
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Veteran investor Mark Mobius told CNBC on Wednesday he “hopes and prays” the price of bitcoin doesn’t crash because the broader market could face a large downturn if that were to happen.
During a CNBC Pro Talk, the Mobius Capital Partners founder suggested the rise in cryptocurrency prices could be partially responsible for the stock market’s recent gains, as investors who have made money in crypto – some of them even “cryptocurrency billionaires” – have taken on more risk in other assets.
“This is probably one of the reasons why the market is doing so well, is that people who have bought, let’s say bitcoin at $US1 ($1) or $US10 ($13), now are feeling rich,” Mobius said.
Mobius added that investors who are feeling rich are “more willing to throw money in the market and even gamble.”
“I hope and pray that the bitcoin prices do not crash because if they do, I think we are going to see a major market correction,” said the investor.
Bitcoin is currently trading around $US55,000 ($71,259) after reaching an all-time high above $US61,000 ($79,033) earlier this week.
In an interview with Bloomberg last week, Mobius said he fears a decline bitcoin prices could hit tech stocks “very badly.”
“I think the relationship between bitcoin prices and the tech market is very close,” he said in a Bloomberg interview. “So watch that indicator.
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