For owners of Bitcoin hard times may soon come. At least according to forecasts by Jeffrey Gundlach, the CEO of Doubleline Capital, a fund that manages over $ 135 billion in funds.
According to the manager, in fact, the price of BTC is expected to drop below $ 23. A quotation which could trigger the spread of panic among those who invested in the cryptographic icon when it was in its upward phase.
Who is Jeffrey Gundlach
Jeffrey Gundlach is known in financial circles as the "King of bonds". This was in fact the title of an article about him that appeared in 2011 on the cover of Barron's. The Institutional Investor he in turn appointed him as "Money Manager of the Year" in 2013, while Bloomberg Markets crowned him in his ranking "The Fifty Most Influential" in 2012, 2015 and 2016. Second Forbes, Gundlach's net worth is currently standing at $ 2,2 billion.
Precisely for this reason CNBC decided to listen to his opinion last week, in an interview in which the businessman expressed his opinion on cryptocurrencies and the dollar. These statements turned out to be extremely interesting.
What Jeffrey Gundlach said
In the course of this detailed chat, Jeffrey Gundlach said that taking a look at the charts related to Bitcoin right now can be quite frightening. Affirmation supported by the descent of which the creation attributed to Satoshi Nakamoto was the protagonist, which is currently around 31 thousand dollars, or half of the maximum achieved at the beginning of the year. A descent which, however, could be far from over. According to him, in fact, BTC could soon drop to 23 thousand dollars. Such as to cause far-reaching effects on the markets, inducing many investors to sell in order not to be overwhelmed by the evolution of the market. At the same time creating new opportunities for those who instead move with greater prudence, without giving in to hysteria.
Is Bitcoin Bad? For the dollar it could be even worse
If Gundlach's forecasts on Bitcoin seem destined to scare investors, those on the dollar are instead destined to cause debate for their implications. According to the manager, in fact, if the greenback could hold out in the short term, in the medium term it is practically doomed. Destined to be buried by the magnitude of the deficit accumulated over time by the United States. He also added that he reputed a new stock market crash is imminent. In which the United States is destined to be the main victim, precisely because of the weakening of the dollar.
Meanwhile, China is moving forward with the digital yuan
The forecast of Gundlach on the dollar, also frightens in consideration of the now expected attack of the digital yuan to the imperial power of the greenback. The Beijing government, in fact, is proceeding briskly on its way towards the debut of the CBDC (Central Bank Digital Currency), so much so that it hits everything that could hinder its path with unusual hardness. Starting precisely with cryptocurrencies, which have been in practice banned throughout the national territory. A decision, that of Beijing, such as to be able to further burden a Bitcoin which currently does not seem able to resume its upward path. All that remains is to wait to understand whether Gundlach's predictions are close to reality or not.