(Tittle Press) - Billionaire Jeff Gundlach shared his thoughts on bitcoin, saying the digital asset is massively overvalued. Gundlach, also known as Bond King, is the founder of investment firm DoubleLine Capital.
Bitcoin, which has suffered numerous drops that have cost it over 30% of its all-time high, continues to struggle, but even at these low prices, the billionaire doesn’t think the cryptocurrency is actually worth its current value.
Bitcoin is a spectator market
Gundlach appeared on Yahoo! Finance to talk about a number of issues surrounding the financial markets. The billionaire is infamous among bond investors, but explained why bitcoin remains too high to buy. For Gundlach, buying bitcoin now is a bad business decision. This is because people are stepping out as the price drops and would make the digital asset even more volatile.
However, the billionaire did not warn against buying the asset at all. In fact, Gundlach gives a price range where he thinks buying bitcoin would be a great move. He explained that investors should buy the digital asset when it loses an additional $ 15,000 from its current value, which places the sweet spot for buying at $ 25,000.
Bitcoin is for speculators right now. I do not recommend buying it. It will be volatile as people come out. Maybe you should buy it for $ 25,000.
Gundlach, who has always been a big supporter of bonds, continued to push for this. He explains that bitcoin is for dynamic investors, whom he compared to FAANG stocks, and for him who is an anti-momentum investor, bonds are a great fit, saying: Bonds fit my culture of cowardice.
If you’re a dynamic investor, it’s like playing roulette with a strategy that works as long as the wheel doesn’t land on zero or double zero. You make money, you make money, and eventually you get a double zero and you’re done. Dynamic investors tend to come out in a burst of glory.
BTC trading at $ 43,750 | Source: BTCUSD on TradingView.com NFTs are unwanted stuff
Bitcoin wasn’t the only crypto asset Gundlach touched on in his interview. The billionaire also focused on NFTs, a rapidly growing space that has grown from obscurity to one of the biggest markets in the crypto space within a year.
He explained that the growth of NFTs was too fast and, like bitcoin, was an investment for investors on high doses of steroids.
Gundlach added that for him, when it came to buying things like art, he would only buy quality. Comparing it to real estate, he states that you should really buy the highest quality because these assets can appreciate very steadily.
As financial markets await a decision from the Fed, the billionaire also warned that the Fed could send the economy into recession if it tightens monetary policy.
By Newsdesk
JANUARY 14, 2022
