CEO of DoubleLine Capital and gold bull Jeffrey Gundlach becomes the latest investor to do a U-turn on Bitcoin.
What Happened: According to Gundlach, who has been a long-term gold advocate, Bitcoin may be a better investment than gold.
“I am a long-term dollar bear and gold bull but have been neutral on both for over six months. Lots of liquid poured into a funnel creates a torrent,” stated Gundlach on Twitter, adding, “Bitcoin may be The Stimulus Asset. Doesn’t look like gold is.”
Why It Matters: Only last month, Gundlach called Bitcoin a “bubble,” saying that the asset may be getting overheated after its massive run in recent months.
“Bitcoin, to me, is now sort of in bubble territory in terms of the way it’s been acting,” he said to CNBC on Jan 11, when Bitcoin’s price had retraced $33,000 after hitting a high of $42,000.
In 2017, the DoubleLine CEO was outright dismissive of Bitcoin and cryptocurrency in general. “I have no interest in this type of maniacal type of trading market,” he said in an earlier edition of CNBC’s Halftime Report, commenting that one would make money if they shorted Bitcoin.
What Else: Gundlach isn’t the only investor that has changed his stance on Bitcoin. Bridgewater Associates founder Ray Dalio recently said that Bitcoin had established itself as a “gold-like asset alternative” – a direct contradiction of his comments in prior years about it not being an effective store of wealth.
More recently, Microsoft Corporation (NASDAQ: MSFT) founder Bill Gates said he was ‘neutral’ on Bitcoin after he previously mentioned he would short Bitcoin if he could.
The gold-Bitcoin ratio recently hit an all-time low, as more investors looked to use the latter as their inflation hedging asset.
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