Billionaire investor Jeffrey Gundlach told CNBC why he prefers Bitcoin. He was previously critical of cryptocurrency.
We all love billionaires who, after being critical of Bitcoin, gave in to their advantages and now declare themselves investors. Jeffrey Gundlach, who is CEO of Doubleline Capital and is also known as the “King of Bonds”, It is one of them. The billionaire investor was one of the super-rich who first reneged on Bitcoin and in 2020, in the midst of a pandemic, he began to say that it was the best hedge against inflation. Then, in January of this year, Gundlach said that an economic recession is expected at the end of 2022, however he did not recommend buying Bitcoin at that time, since the recession could affect crypto too.
Now, in an interview with CNBC, Gundlach says that would buy Bitcoin rather than gold in the short term, as the main asset trades near the lower end of its range.
This was his literal response when the interviewer asked him whether to invest in Bitcoin or gold:
“Well, I use Bitcoin. You know, Bitcoin has fallen in a range with the high end at 60,000 (dollars) and the low end at 40,000. It seems like every time we get together, it’s in our 60s or 40s. The last time it was in our 40s, so it hasn’t moved since then.”
He added: “Time before that, it was at 60. So with the 40 to 60 range and gold in a range of, I don’t know, let’s call it $1,750 to $2,000, gold is in the middle of its range, while Bitcoin is at the lower end of its range. So I would take it now, before the next Fed meeting, I will take Bitcoin over gold.”
However, he made the clarification that he was talking about. short term.
It is worth noting that Bitcoin rose to $41,717 yesterday, after the US Federal Reserve raised interest rates by 0.25%. However, it did not represent the jump that many expected. Now, according to data from CryptoMarkets, the price of the main cryptocurrency is USD $40,945.
The Federal Reserve decided to raise interest rates for the first time since 2018, following the example of the Bank of England in raising rates by 25 basis points in line with market expectations.
Reacting to this, Gundlach said that the Fed’s announcement of an interest rate hike yesterday is simply “following” the two-year Treasury, adding that they were “far behind”.
Here he explains:
The CEO of Doubleline Capital added: “Stocks are oversold and will rise in the immediate term, but will reverse once a couple more rate hikes are made.” Given the growing correlation between Bitcoin and stocks, this could be a positive for cryptocurrencies in the short term.
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