Jeffery Gundlach, an American investor and co-founder of DoubleLine Capital, an investment firm with over $150 billion in assets under management, has announced that he prefers Bitcoin to gold in the short term.
Why Is Billionaire ‘Bond King’ Jeffery Gundlach Choosing Bitcoin Over Gold?
Speaking to CNBC, Gundlach noted that Bitcoin is currently trading near the lower end of its range. After a straight week for the cryptocurrency market, BTC price surged above $41,000 yesterday after the Federal Reserve increased its benchmark interest rate by a quarter point. This was the first rate hike since December 2018.
Commenting on this development, “Bond King” stated that the Fed was far behind in Wednesday’s policy decision and said, “We have an extremely flat yield curve at these inflation levels right now.” used the expressions.
Gundlach also added that stocks are currently in the oversold territory and he expects an increase in the near term. He argues that the increased correlation between bitcoin and stocks could benefit cryptocurrencies:
“Equities are currently in extreme decline. I think they will rise in the short term. The recent correlation between stocks and Bitcoin can also benefit Bitcoin. That’s why I prefer Bitcoin to gold, albeit in the short term.”
Bitcoin has long been viewed as “digital gold,” and crypto proponents say it serves as a very good hedge against uncertainty, just like the precious metal. But the top crypto has been moving with stocks in recent months.
The DoubleLine CEO’s statement in support of Bitcoin also came after the digital asset’s dizzying rise in November last year. In BTC’s parabolic rally, we witnessed the crypto asset offering higher returns to investors than gold.
In particular, Bitcoin’s rise has been largely fueled by publicly traded companies (like MicroStrategy and Tesla) and sovereign states (like El Salvador, Ukraine) that have embraced the cryptocurrency in recent months.
Crypto backers expect more companies and countries to follow suit soon. However, BTC has been trading in the $39,000 to $44,000 range since the beginning of the year due to inflation concerns and Russia’s continued occupation of Ukraine.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.