Jeffrey Gundlach, CEO of the investment management firm DoubleLine, said that Bitcoin could see more favorable long-term activity than that of the US dollar.
Will BTC continue to fall?
In an interview on Wednesday on CNBC's Halftime Report, Gundlach said he believes people would be able to buy Bitcoin soon.quotation BTC) for less than $ 23.000 given the likelihood of the crypto asset forming a head and shoulders trading pattern. Apparently he was referring to a “head” when the BTC price peaked at over $ 64.000 on April 13 and the back when the beginning of January rose to more than $ 40.000 and the recent drop to $ 30.000.
“I'm not a big fan of head and shoulders tops, but that looks pretty compelling,” Gundlach said. "Going neutral at $ 23.000 was obviously too early, but I have a feeling you'll be able to buy it again under $ 23.000."
Although the billionaire claimed to be bullish on the cryptocurrency early last year, he always viewed it as a "highly speculative and highly volatile" asset, calling the current price chart "pretty scary". While volatility would suggest price rises and falls, Gundlach's views on the US dollar beyond this year were apparently more bearish.
No trading attitude
DoubleLine's CEO speculated that both US trade and budget deficits, which have likely increased due to the economic fallout from the ongoing pandemic, could cause the dollar to "drop quite substantially." He added: “In the short term, dynamics have been and will continue to be in place for the dollar to be marginally or moderately stronger. In the long run, I think the dollar [is] doomed ”.
According to MarketWatch's US dollar index, the dollar was trading at 92,64 at the time of publication, up about 0,25% over the past 24 hours. Bitcoin's price fell by around 4% to hit $ 31.436.
Related: “I should have bought a lot more,” laments the billionaire investor on Bitcoin
Gundlach, known by many as the "King of Bonds," previously called Bitcoin a good hedge against inflation alongside gold, but expressed concerns about the traceability of cryptocurrencies. DoubleLine currently has more than $ 135 billion in assets under management - none of which allegedly include cryptocurrencies - and the CEO said he doesn't "believe in Bitcoin."
Finally, remember that those interested in trading BTC can use platforms such as Bitcoin system to trade easily and securely.