‘Bond King’ Jeffrey Gundlach sees risk of Bitcoin dropping to $23,000

The head of asset management firm DoubleLine Capital, Jeffrey Gundlach, called the Bitcoin chart ‘scary’ and predicted a drop in price to $23,000. CNBC.

The expert allowed that in the long run Bitcoin may show stronger momentum than the US dollar. But on the shorter horizon he saw risks of a head-and-shoulders reversal pattern.

“I don’t trust this chart, but this time everything looks quite convincing. I have a feeling that soon you’ll be able to buy Bitcoin below $23,000,” Gundlach said.

The channel noted that the DoubleLine Capital CEO could have meant a potential break of the ‘neckline’ near $30,000, while the ‘head’ appeared in April after reaching all-time high.

The billionaire admitted that he had bet on Bitcoin continuing to rise. At the same time he did not discard the notion that Bitcoin is an ‘extremely speculative and volatile asset’.

Gundlach forecast a ‘significant weakening of the dollar’. He cited the US trade and budget deficits as the reason.

“In the short term, the U.S. national currency may strengthen to some extent. In the long run, the dollar is doomed,” he suggested.

The CEO of DoubleLine Capital rejected the possibility of personally investing in digital gold.

“I don’t have that kind of risk tolerance in my DNA, when I have to worry every day about whether Bitcoin has fallen 40%?”, Gundlach explained.

In February, the head of DoubleLine Capital described Bitcoin as the best investment relative to gold.

In November 2020, Gundlach described Bitcoin as an inflation hedge, but refused to believe in the success and anonymity of the digital asset.

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