Jeffrey Gundlach, billionaire and founder of investment firm DoubleLine Capital, is issuing a warning to investors about Bitcoin (BTC).
In a new interview with Yahoo Finance, Gundlach says even though he was bullish on Bitcoin in the past, he’s now more cautious and believes BTC is now for speculators, and it can be purchased later at a discounted price.
“I was very positive on Bitcoin a year ago. It was around, I think, as low as $4,000 or something…I thought I was a bull because I thought it would go up 4x, and obviously, it went up a lot more than that, it went up 16x or something like that at the peak.
But it peaked out and has double topped at $65,000 or so. It actually put in a minor new high in November, taking out the high that was in place around April or so, but it didn’t hold. And that’s never a good sign.
I think Bitcoin is for speculators at the present moment. I would advise against Bitcoin. I think you may get an opportunity to buy it – I think now it’s at about $45,000, so about $20,000 off the highs. Maybe you should buy it at $25,000.”
Gundlach then addresses the non-fungible tokens (NFTs) craze and says that despite being impressed with how fast the NFT markets have grown, the space isn’t for him.
“A lot of people got in [Bitcoin] at $1,000. And it took a while to get to $60,000. The NFT thing went from worthless to what? $69 million? $96 million? It went from ‘I don’t know what an NFT is’ to ‘it’s worth $70 million.’ And so that’s certainly not for me. That’s for momentum investors on large doses of steroids.”
Bitcoin is exchanging hands at $46,262 at time of writing, a 9% decrease from its 30-day peak of $50,840.
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