Jeffery Gundlach, an American investor and co-founder of DoubleLine Capital – an investment firm with over $150 billion in assets under control — believes that the bellwether cryptocurrency is a better short-term investment than gold.
Why Billionaire ‘Bond King’ Jeffery Gundlach Chooses Bitcoin Over Gold Gundlach stated in an interview with CNBC that bitcoin is now trading around the bottom end of its trading range. Following a flat week for the cryptocurrency market, the price of Bitcoin jumped past the $41,000 barrier yesterday following the Federal Reserve’s quarter-percentage-point increase in its benchmark interest rate. This is the first rate increase since December 2018.
The “Bond King” commented on this, noting that the Fed’s policy decision on Wednesday was consistent with the two-year treasury, although somewhat behind.
Gundlach said that stocks are presently in the oversold zone and that he anticipates a rapid rebound. He contends that the increased link between bitcoin and stocks may help cryptocurrencies.
Bitcoin has long been referred to as “digital gold,” with crypto advocates claiming that it, like the precious metal, functions as an excellent hedge against uncertainty. However, the leading cryptocurrency has been advancing in lockstep with markets in recent months.
The DoubleLine CEO’s backing follows bitcoin’s spectacular ascent to $69,000 in November last year. BTC’s parabolic rise has resulted in the cryptocurrency providing investors with a better rate of return than gold.
Notably, bitcoin’s recent ascent has been fueled by both publicly listed firms (such as MicroStrategy and Tesla) and sovereign entities (such as El Salvador and Ukraine), both of which have embraced the OG cryptocurrency in recent months.
Enthusiasts anticipate that more corporations and governments will soon follow suit. However, despite its promoted benefits, BTC has been trading in the $39K-$44K area since the start of the year, due to inflation worries and Russia’s continuing invasion of Ukraine.
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