Doubleline Capital CEO Jeffrey Gundlach, also known as the “King of Bonds,” said he would not be surprised at all if the price of bitcoin fell to $10,000. “We have already seen around the edges of explosions in some parts of the crypto world, and that could portend some trouble,” he explained.
Billionaire investor Jeff Gundlach shared his outlook on bitcoin in an interview with CNBC on Wednesday.
Gundlach is the CEO of Doubleline Capital, which has over $137 billion in assets under management (AUM). He is sometimes referred to as the “Bond King” after appearing on the cover of Barron’s in 2011 as “The New Bond King”. Institutional Investor named him “Money Manager of the Year” in 2013 and Bloomberg Markets named him one of the “Fifty Most Influential” in 2012, 2015 and 2016. According to Forbes, his net worth is currently 2.2 billions of dollars.
The billionaire bond king explained that when the price of bitcoin fell below $30,000, his chart indicated that $20,000 was “going to come fast, and it did.” Emphasizing that “the trend in crypto is clearly not positive,” Gundlach said:
I’m not bullish at this $20,000 or $21,000 on bitcoin. I wouldn’t be at all surprised if it went to $10,000.
The CEO of Doubleline Capital explained, “We have already seen around the edges of explosions in some parts of the crypto world, and that could be a harbinger of some trouble.”
There have been several disturbing events in the crypto space recently. This week, there are reports that crypto hedge fund Three Arrows Capital could face insolvency. Crypto lender Celsius Network also abruptly froze withdrawals earlier this week, citing extreme market conditions and volatility. In May, cryptocurrency terra (LUNA) and stablecoin terrausd (UST) crashed; their implosion resulted in investigations by various authorities.
Gundlach has previously said bitcoin is for speculators only. In January, when BTC was trading at around $42,000, he said the crypto was massively overvalued and advised against buying it. The billionaire said at the time, “Maybe you should buy it for $25,000.”
In July last year, he predicted that the price of bitcoin would fall below the $23,000 level, saying:
I have a feeling you’ll be able to buy it again below $23,000.
What do you think of Jeffrey Gundlach’s comments? Let us know in the comments section below.
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