Jeffrey Gundlach, the CEO of DoubleLine Capital and known as "Bond King" (king of fixed income securities), warned that Bitcoin could be in a huge bubble. He based his view on BTC's recent performance, which included a parabolic spike and a big drop yesterday.
The king of fixed income sees Bitcoin as a bubble
It is safe to say that bitcoin started a significant bull run in early October 2020. In the following months, BTC more than quadrupled its value, reaching a high of $ 42,000 last week. However, the asset was also not exempt from adverse developments and yesterday it dropped nearly $ 12,000 in less than 24 hours.
This parabolic price increase followed by a massive correction raised concerns among some traditional investors, including DoubleLine Capital CEO Jeffrey Gundlach.
He warned that similar developments could indicate that the asset has become a bubble, and people need to be cautious before allocating funds in the cryptocurrency.
“I don't like bitcoin here. I don't like things that are on a wooden leg like that. Bitcoin, for me, is now in bubble territory in terms of how it has been doing. ”
Bond King is not the only one who recently claimed that BTC is in a bubble. Billionaire Mark Cuban said the cryptocurrency market was similar to the internet bubble of the 2000s, but he confirmed his belief that Bitcoin and Ethereum were like Amazon or Google, which will remain strong even after the bubble burst .
Bill Miller disagrees
In the opposite direction, US fund manager and philanthropist Bill Miller, who predicted the aforementioned bullish run in October, said the cryptocurrency is less risky the higher its price goes.
“Bitcoin is a story of supply and demand. There are 900 new bitcoins created every day. The total supply of Bitcoin is growing at less than 2% per year, and it is obvious from the price that demand is growing much, much faster than that. ”
Consequently, he concluded that as long as this narrative persists, BTC is "likely to go higher, perhaps considerably higher."
Miller also recently predicted that corporate funds could start investing even more towards cryptocurrency and said that BTC is a "rat poison for money (fiduciary)".
Continue reading: Bill Miller cites bitcoin as a national chain risk management strategy
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