- According to Jeffrey Gundlach, the trading pattern for Bitcoin may suggest a price drop below $30,000
- According to Jeffrey Gundlach, Bitcoin could experience more positive action in the long run than the US dollar
- Both the US trade and budget deficits, according to the DoubleLine CEO, have worsened as a result of the economic downturn
In the long run, according to Jeffrey Gundlach, CEO of investment management firm DoubleLine, Bitcoin could experience more positive action than the US dollar. Gundlach claimed in a Wednesday appearance on CNBC’s Halftime Report that he believes individuals will soon be able to buy Bitcoin (BTC) for around $23,000 because the crypto asset is likely to create a head-and-shoulders trading pattern. He appeared to be alluding to a head when the BTC price peaked at more than $64,000 on April 13 and the shoulders when the price rose to more than $40,000 in early January and then fell to the $30,000s recently.
Gundlach’s view on buying Bitcoin
I’m not a big fan of head-and-shoulders tops, Gundlach added, but this one looks quite convincing. Turning neutral at $23,000 was clearly premature, but I believe you’ll be able to buy it for less than $23,000 again.
On Monday, Bitcoin plunged as much as 20% to $30,324. Although the currency has lost almost $10,000 in value after reaching a high of $41,000 last week, it is still up nearly 89 percent in the last month. The rise of bitcoin, according to Gundlach, has happened far too quickly. If institutions get engaged, the investor noted, bitcoin has a fantastic supply and demand dynamic. The total number of bitcoins that can ever be mined is limited to 21 million, ensuring that supply remains limited even as demand rises. He has emphasised that he is not a bitcoin hater, saying that he became neutral on the cryptocurrency once it hit $23,000.
Though the billionaire stated early last year that he was positive on Bitcoin, he has always viewed it as a highly speculative and volatile asset, calling the current price chart very terrifying. While volatility suggests price increases as well as decreases, Gundlach’s outlook for the US dollar beyond this year appears to be more pessimistic. The dollar was trading at 92.64 at the time of publication, up 0.25 percent in the last 24 hours, according to MarketWatch’s U.S. dollar index. Bitcoin’s price has dropped by about 4% to $31,436.
He stated at a DoubleLine webcast in December that he is neither a proponent nor a detractor of bitcoin. He is not a member of the cult, nor is he a member of the anti-bitcoin cult. He only sees it as an intriguing depiction of animal spirits and imagination. Gundlach previously stated in a RealVision interview dated October 1 that he does not believe in bitcoin. He assumed it was a fabrication. He believes it is easily traced and traceable. He doesn’t believe it’s a pseudonym. Gundlach then clarified that he was not anti-bitcoin.
Doubleline doesn’t believe in Cryptocurrency
Gundlach, dubbed the Bond King by many, has previously described Bitcoin and gold as good inflation hedges, but has expressed worries about the traceability of cryptocurrencies. DoubleLine presently manages over $135 billion in assets, none of which purports to include cryptocurrency, and the CEO has stated that he doesn’t believe in Bitcoin. I’ve never been long Bitcoin, and I’ve never been short; it’s simply not for me, according to Gundlach. I don’t have the risk tolerance in my DNA to be concerned about checking the stock quote every day to see if it’s down 40%.