The investor Mark Mobius predicts bitcoin could crash 40% to $10,000 next year. In May, he correctly called the drop to $20,000 in 2022.

Bitcoin could crash to $10,000, a more than 40% plunge from current prices, veteran investor Mark Mobius told CNBC.

The co-founder of Mobius Capital Partners, who correctly called the drop to $20,000 this year, said that bitcoin is “not far away” from $10,000 now that it has broken the technical support levels of $18,000 and $17,000.

“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,” Mobius said.

“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.”

While the $10,000 mark has not been reached, bitcoin has fallen as low as $15,480 this year.