The billionaire Jeff Gundlach shared his thoughts on the bitcoin, saying that the digital asset is hugely overvalued. Gundlach, who is also known as the 'King of Bonds', is the founder of the investment firm DoubleLine Capital. Bitcoin, which has experienced numerous dips that have caused it to lose more than 30% of its all-time high, continues to struggle to raise its head, but even at these low prices, the billionaire doesn't believe the cryptocurrency is actually worth. its current value.
Gundlach appeared on Yahoo! Finance to talk about a variety of issues surrounding the financial markets. The billionaire is notorious among bond investors, but he talked about the because bitcoin remains too expensive to buy. For Gundlach, buying bitcoin now is a bad trading move. This is because people are exiting as the price is falling and it would cause the digital asset to become even more volatile.
However, the billionaire did not warn against buying the asset at all. Indeed, 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 another $ 15.000 from its current value, putting the sweet spot for the purchase at $ 25.000. "Bitcoin is for speculators right now. I would recommend not 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 proponent of bonds, has 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 until the wheel hits zero or double zero. You're making money, making money, and then in the end you get a double zero and you're screwed. Momentum investors tend to come out in a blaze of glory " - has continued.
Bitcoin wasn't the only cryptocurrency asset Gundlach touched on in his interview. The billionaire also focused on NFT, a rapidly growing space that has gone from obscurity to one of the largest 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 with large doses of steroids".
Gundlach also said that for him, when it comes to buying something like art, he would only buy quality. Making a comparison with real estate, he states that "you should really buy the highest quality, as these goods can appreciate very constantly ”.
Although financial markets await a Fed decision, the billionaire also warned that the Fed could send the economy into recession if it tightens its monetary policy.