The ‘Bond King’ Jeffrey Gundlach forecasts Bitcoin at $10,000

The head of DoubleLine Capital, Jeffrey Gundlach, stated that he wouldn’t be surprised by Bitcoin dropping to $10,000.

In his words, the rapid decline of digital gold to near $20,000 was evident, after the bulls failed to hold the quotes above $30,000.

“The trend is clearly not positive,” Gundlach said.

He said buying Bitcoin at the current price was not advisable.

On May 11, Bitcoin failed to hold the $30,000 level. After roughly a month of trading near the symbolic mark, on June 13 the price fell below $23,000.

On June 15, Bitcoin slid to $20,225 (on Bitstamp).

The asset rose modestly on the Federal Reserve’s decision to raise the target range of the federal funds rate by 75 basis points. However, after the price approached $23,000, it again moved lower.

As of writing, Bitcoin trades around $21,200. The cryptocurrency market’s capitalisation is under $1 trillion, roughly in line with the January 2021 level.

Earlier, well-known crypto skeptic Peter Schiff argued that Bitcoin should be sold now to buy it back cheaper later. He sees a likely test of a long-term support level around $5,000. In May, he named another bottom level — $8,000.

At the same time, Guggenheim Partners’ investment chief Scott Minerd also allowed for Bitcoin to fall to that level. Bestselling author of ‘Rich Dad Poor Dad’ and entrepreneur Robert Kiyosaki called another bottom for the price of digital gold — $17 000.

CEO and founder of Galaxy Digital, Mike Novogratz, for his part, is convinced that the price will remain above $20,000.

In early June, BitMEX co-founder Arthur Hayes said Bitcoin’s quotes reached current bottom. In April, the entrepreneur forecast a drop to $30,000 by the end of that month.

According to investor and Shark Tank star Kevin O’Leary, whether the crypto market has bottomed can only be determined in the event of a serious negative development.

That could be the bankruptcy of the crypto-lending platform Celsius, which has run into financial difficulties. Georgetown University Law Professor Adam Levitin calls such a development virtually inevitable.

In January, Gundlach predicted Bitcoin would fall to $25,000 due to the Fed’s tightening of monetary policy. At the time, he described that level as a “good level to open a long position in digital gold.”

Follow ForkLog’s Bitcoin news on our Telegram — cryptocurrency news, prices and analytics.