Billionaire investor Jeffrey Gundlach, known as the “Bond King,” is cautioning against rushing into Bitcoin (BTC), stating that the cryptocurrency has lost its momentum.
During a recent interview with CNBC, the CEO of DoubleLine Capital expressed his belief that Bitcoin and Ethereum (ETH) could experience significant corrections if other asset classes, such as stocks, undergo a downturn.
Gundlach pointed out that gold has been outperforming Bitcoin this year, indicating that BTC’s reputation as a store-of-value asset may be diminishing.
“I’m not particularly enthusiastic about cryptocurrencies. I’ve observed that Bitcoin has lagged behind gold this year, which is quite noteworthy considering the overall market performance. Therefore, I don’t view Bitcoin as a very attractive investment option. While some individuals have profited greatly from it in the past, it seems to have lost its appeal and may not fulfill its intended purposes.”
Gundlach also stated his lack of interest in engaging in crypto treasury strategies.
“Every so often, there emerges something akin to a fad. I recall instances like Portable Alpha and [130/30] strategies. Many of these trends appear somewhat gimmicky to me. Consequently, I prefer to steer clear of such ventures.”
As of now, Bitcoin is being traded at $114809 USD while ETH holds a value of $4374 USD.