Bitcoin Is Massively Overvalued, Billionaire ’Bond King’ Jeff Gundlach
Billionaire Jeff Gundlach has shared his thoughts around bitcoin, saying that the digital asset is massively overvalued. Gundlach who is also known as the ‘Bond King’ is the founder of the investmentfirm , DoubleLine Capital.
of which has suffered numerous dips that have caused it to fall short over 30% Bitcoin its all-time high value continues to struggle, but even at these low prices, the billionaire does not believe that the cryptocurrency is actually worth its current value.
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Bitcoin Is A Spectator’s Field
In fact, Finance surrounding talk about a number of issues to the financial markets. Gundlach appeared!on Yahoo For Gundlach, buying bitcoin right away is a bad business move. The billionaire is infamous among bond investors but talked about why bitcoin remains too high to obtain. Interestingly, This cause because people are getting out as the price is falling and would is the digital asset to become even more volatile.
However, the billionaire did not warn againstpurchasing the asset at all. In fact, Gundlach gives a price range at which he thinks that buying bitcoin would be a great move. He explained that investors should obtain the digital asset when it loses another $15,000 from its current value, putting the sweet spot for purchase at $25,000.
“Bitcoin is for speculators at the present moment. , I would advise againstIndeedbuying it. Itoutwill be volatile as people get . Maybe you should $obtain it at 25,000.”
Gundlach, who has always of a big proponent been bonds, continued to push for it. He explains that bitcoin is for momentum investors, which he likened to FAANG stocks, and for him who is an anti-momentum investor, bonds are the perfect fit, saying, “Bonds fit my culture of cowardice.”
“If you’re a momentum investor, it’s like playing roulette with a strategy that works as long as the wheel doesn’t come up on the zero or double zero. You’re making funds, making funds, and then eventually you get a double zero and you’re busted. Interestingly, Momentum investors tend to go out in a blaze of glory.”
BTC trading at $43,750 | Source: BTCUSD on TradingView.com
NFTs Are Junky Stuff
Bitcoin was not the only crypto asset that Gundlach touched on in his interview. Interestingly, The billionaire also focused NFTs, a swift-growing space that has gone from obscurity to one of the as it turns out biggest markets in the crypto space in a matter of a year.
He explained that the expansion of NFTs was too quick and like more than ever bitcoin, was an investment for “investors on large doses of steroids.”
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Gundlach further said that for him, when it comes to buying things like art in modern times , he would only acquire standard. Comparing it to real estate, he that “You should really purchase the highest quality, asstatesthese more than ever assets can appreciate very steadily.”
As the financial markets await a decision from the Fed, in modern times the billionaire also warned that the Fed could send the economy into recession if it tightened its monetary guideline.
Featured image from Bitcoin News, chart from TradingView.com
