Jeff Gundlach: BTC is not recovering anytime soon

Just yesterday, Live Bitcoin News published an article discussing all of the analysts who think Bitcoin is preparing for a big comeback and that the currency could possibly overtake the USD at some point. Billionaire investor and “Bond King” Jeff Gundlach is not one of them.

Jeff Gundlach is not convinced of BTC

In a recent interview, Gundlach says Bitcoin is likely to fall another 27 percent, officially becoming the new 2018 in 2021, while also thinking that fiat currencies like the US dollar will be a world of damage. Discussing a recent Bitcoin chart he came across, Gundlach warned it wasn’t looking good for the world’s leading digital currency by market cap. He explains:

The graph on Bitcoin looks pretty scary … I have a feeling you can buy it back under $ 23,000. Bitcoin has really lost steam.

In the last year or so, Bitcoin has taken a new form for many traders. Initially, it was viewed only as a speculative asset – one that, under the right circumstances, could potentially make a trader rich very quickly. However, during the time of the coronavirus pandemic, Bitcoin was viewed as a currency that could potentially stabilize wealth in times of economic turmoil.

It is viewed by many as a hedging tool, although Gundlach disagrees. He says:

I think it’s just a commercial vehicle. Personally, I’ve never been involved with Bitcoin for long. I’ve never run out of Bitcoin. It’s just not for me. I don’t have that kind of risk tolerance in my DNA that I have to worry about pulling up the quote every day to see if it’s down 20 percent, but I wouldn’t own Bitcoin right now. I think you had the option to buy it at a cheaper price.

The dollar keeps falling

Bitcoin aside, Gundlach isn’t confident when it comes to the U.S. dollar. He says inflation is becoming a real problem and the government is printing money like there’s no tomorrow. He claims:

I don’t want to be overly dramatic, but I think the dollar … I’ll be using the word “damn” in the long run. In the short term, the momentum has been and remains for a slightly or moderately stronger dollar. It will be difficult for the Fed to describe this inflation situation as temporary, or “temporary” as they like to say … Import prices are up 11 percent today. We all know the CPI came to 5.4. I mean, these are numbers that remind me of the 1970s. Inflation is not slowing down right now. It speeds up.

Tags: Bitcoin, Inflation, Jeff Gundlach

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