‘Bond King’ Jeffrey Gundlach Urges Waiting for Bitcoin to Fall to $25,000 on Fed Policy

The head of DoubleLine Capital, Jeffrey Gundlach, said Bitcoin is too expensive in light of the Fed‘s forthcoming tightening of monetary policy and suggested waiting for its price to fall to $25,000 before buying.

“Bitcoin is currently suitable for speculators. It will remain volatile as market participants dump it. I wouldn’t rush to buy it. The valuation is high. I like buying cheap things. Perhaps $25,000 will be a good level to open a long position.”, — said the billionaire.

In the interview Gundlach also touched on non-fungible tokens.

The story with NFT has moved from “I don’t know what it is” to “This is worth $70 million.” This is for those who take large doses of steroids, — he explained.

Gundlach’s scepticism about market prospects is tied to hawkish signals from the Fed. He warned of a high probability of a U.S. recession in the second half of 2022 after four rate hikes.

The CEO of DoubleLine Capital drew attention to the relationship between the trajectory of the U.S. stock market and the Fed’s balance sheet. In his view, against the backdrop of extreme valuations this “should worry investors” because of the Fed’s plans to shrink the size of its asset purchases.

Earlier, economist Alex Kruger predicted Bitcoin could fall below $40,000 in an inflationary environment.

Earlier, IMF IMF drew attention to the growing correlation between Bitcoin and the S&P 500 index.

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