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Billionaire 'Bond King' Jeff Gundlach says bitcoin appears to be in 'bubble territory'

Jan 12, 2021, 02:47 IST
Business Insider
FILE PHOTO: Jeffrey Gundlach, Chief Executive Officer, DoubleLine Capital, speaks at the Sohn Investment Conference in New YorkReuters
  • "Bond King" Jeffrey Gundlach told CNBC on Monday bitcoin hit "bubble territory" once it passed $23,000, and he doesn't feel comfortable with the coin's current levels.
  • "I don't like bitcoin here, I don't like things that are up on a stilt like that," the DoubleLine Capital founder said of the coin that rallied nearly 300% in 2020. He added that he's "neutral" on bitcoin.
  • Bitcoin fell as much as 13% on Monday to $30,558. It's lost over $10,000 in value since hitting a record above $41,000 last week, but the coin is still up nearly 89% in the last month.
  • Watch bitcoin trade live here.
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"Bond King" Jeffrey Gundlach told CNBC on Monday bitcoin hit "bubble territory" once it passed $23,000, and he doesn't feel comfortable with the coin's current levels.

"I don't like bitcoin here, I don't like things that are up on a stilt like that," the DoubleLine Capital founder said of the coin that rallied nearly 300% in 2020.

Bitcoin fell as much as 20% on Monday, to $30,324. While the coin has lost roughly $10,000 in value since hitting a record above $41,000 last week,it's still up nearly 89% over the past month. Gundlach suggested bitcoin's run-up has happened all too fast.

"People seem to be so much on one side of the boat that I just really don't really believe the boat can sail that well, and I think that's where bitcoin is on the bullish side right now," he said.

Read more: The CIO of a $500 million crypto asset manager breaks down 5 ways of valuing bitcoin and deciding whether to own it after the digital asset breached $40,000 for the first time

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The investor added that bitcoin has a "terrific supply and demand dynamic" if institutions get involved. The total number of bitcoins that can ever be mined is 21 million, which means that the supply stays scarce even if demand grows. He's insisted that he's not a "bitcoin hater" and told CNBC he went neutral on bitcoin after it hit $23,000.

In a DoubleLine webcast in December, he said: "I'm not a bitcoin pro or con person. I'm not in the cult, and I'm not in the anti-bitcoin cult. I just look at it as a fascinating representation of animal spirits and speculation."

Earlier, in a RealVision interview from Oct 1, Gundlach said he "didn't believe in bitcoin."

"I think that it's a lie," he said. "I think that it's very tracked, traceable. I don't think it's anonymous." Gundlach later added that he was "not at all a bitcoin hater."

Read more: Goldman Sachs says to buy these 29 stocks poised to deliver the strongest sales growth through year-end

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