After breaching the $20,000 mark, Bitcoin has entered bubble territory, said the head of DoubleLine Capital Jeffrey Gundlach in a CNBC commentary CNBC.
Last year the investor labeled Bitcoin hedge against inflation as the dollar weakened. But after the cryptocurrency rose to roughly $23,000, in his words, a “mania” began.
“Bitcoin is now in bubble territory. People are right; it has an amazing supply-and-demand dynamic,” Gundlach said.
Right now the Bond King does not like Bitcoin because of its high volatility. He is neutral on the first cryptocurrency after crossing the $20,000 threshold.
There are periods when so many people are on one side of the boat that I don\’t believe the boat can float well,
the investor explained.
As a reminder, on January 11 the price of Bitcoin fell below $31,000, and by the end of the day quotes had climbed back to $33,000.
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