Reuters
- “Bond King” Jeffrey Gundlach told CNBC on Monday, bitcoin hit “bubble territory” by surpassing $ 23,000, and it does not feel comfortable with current currency levels.
- “I don’t like bitcoin here, I don’t like things that are on a wooden leg like that,” said the founder of DoubleLine Capital about the currency that rose almost 300% in 2020. He added that it is “neutral” in bitcoin.
- Bitcoin fell by 13% on Monday, to $ 30,558. He has lost more than $ 10,000 in value since he hit a record high above $ 41,000 last week, but the currency still rose nearly 89% last month.
- Watch the bitcoin trade live here.
Jeffrey Gundlach of “Bond King” told CNBC on Monday that bitcoin has reached “bubble territory” by exceeding $ 23,000, and he is not comfortable with current currency levels.
“I don’t like bitcoin here, I don’t like things that are on a stilt like this,” said the founder of DoubleLine Capital about the currency that rose nearly 300% in 2020.
Bitcoin fell by up to 20% on Monday, to $ 30,324. Although the currency has lost about $ 10,000 in value since it hit a record high above $ 41,000 last week, it still rose nearly 89% last month. Gundlach suggested that the increase in bitcoin happened too fast.
“People seem to be so on the side of the boat that I really don’t believe that the boat can navigate so well, and I think that’s where bitcoin is on the optimistic side now,” he said.
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The investor added that bitcoin has an “incredible dynamic of supply and demand” if institutions get involved. The total number of bitcoins that can be extracted is 21 million, which means that supply remains scarce even if demand grows. He insisted that he is not a “bitcoin hater” and told CNBC that he became neutral towards bitcoin after reaching $ 23,000.
In a DoubleLine webcast in December, he said, “I’m not a bitcoin pro or swindler. I’m not in the cult and I’m not in the anti-bitcoin cult. I just see it as a fascinating representation of animal spirits and speculation.”
Previously, in a RealVision interview on October 1, Gundlach said he “did not believe in bitcoin”.
“I think it’s a lie,” he said. “I think it’s very tracked, traceable. I don’t think it’s anonymous.” Gundlach later added that he “was not a bitcoin hater”.
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