Bitcoin is seriously overvalued, billionaire ‘bond king’ Jeff Gundlach

Billionaire Jeff Gundlach has shared his thoughts on Bitcoin, saying the digital asset is grossly overvalued. Gundlach, also known as the “bond king,” is the founder of investment firm DoubleLine Capital.

Bitcoin, which has suffered multiple drops that have lost more than 30% of its all-time high value, continues to struggle, but even at such low prices, the billionaire doesn’t believe the cryptocurrency is actually worth the money.

Related reading | ARK Invest CEO Cathie Wood on What Will Drive Bitcoin Correction

Bitcoin is a bystander’s market

Gundlach appears in Yahoo!finance Talk about some of the issues surrounding financial markets. The billionaire is notorious among bond investors, but he talked about why Bitcoin is still too expensive to buy. For Gundlach, buying bitcoin right now is a bad business move. This is because people are pulling out as prices drop, which will cause the digital asset to become more volatile.

However, the billionaire offered no warning against buying the asset at all. In fact, Gundlach gave a price range where he thinks buying Bitcoin would be a good move. He explained that when the digital asset loses another $15,000 from its current value, investors should buy the digital asset, placing the sweet spot for the purchase at $25,000.

“Bitcoin is currently for speculators. I advise against buying it. It’s going to be volatile as people leave. Maybe you should buy it at $25,000.”

Gundlach, who has been a big supporter of bonds, continues to push for it. He explained that Bitcoin is suitable for momentum investors, likening it to FAANG stocks, while for reactionary investors, bonds are perfect, saying, “Bonds fit my culture of cowardice.”

“If you’re a momentum investor, it’s like playing roulette, as long as the wheel doesn’t show up at a zero or a double zero, it works. You’re making money, you’re making money, and then eventually you get a double zero, and you Bankruptcy. Momentum investors tend to walk out in glory.”

BTC trading at $43,750 | Source: BTCUSD on TradingView.com

NFTs are garbage

Bitcoin isn’t the only crypto asset Gundlach mentioned in the interview. The billionaire is also focusing on NFTs, a fast-growing field that went from obscurity to one of the biggest markets in crypto within a year.

He explained that NFTs are growing too fast and, like Bitcoin, are investments in “investors on steroids.”

Related reading | Jack Dorsey launches Bitcoin Defense Fund to help developers facing lawsuits

Gundlach further stated that for him, when it comes to buying things like art, he only buys quality. Comparing it to real estate, he said “you really should be buying the highest quality assets because these can appreciate very steadily.”

As financial markets await the Fed’s decision, the billionaire also warned that if the Fed tightens monetary policy, it could tip the economy into recession.

Featured image from Bitcoin News, chart from TradingView.com

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