Too Much Bullishness in the Bitcoin Market Has The Bond King Not Liking It Here
But if institutions get involved, the “terrific” supply-demand dynamic can do the magic, said Jeffrey Gundlach.
The calls for bubbles are making a reappearance after the Bitcoin price crashed to nearly $30,000 on Monday from Friday's ATH of $42,000.
While the greatest pullback since march 2020 is seen by industry experts as healthy for a move up, skeptics like Mark Cuban are comparing it with the Dot.com bubble.
Also, DoubleLine Capital CEO Jeffrey Gundlach now feels Bitcoin is getting overheated.
“I don’t like bitcoin here. I don’t like things that are up on a stilt-like that,” said Gundlach on CNBC. “Bitcoin, to me, is now sort of in bubble territory in terms of the way it’s been acting.”
Back in Jan. 2020, the bond king predicted $15k per BTC. Before that, in Dec. 2017, when BTC was at $16k, he advised shorting the digital asset.
“I think all of these things are kind of baked-in right now, and the trade location is poor,” said Gundlach as he explained his concern about investors becoming too optimistic. This “consensus narrative” is what has made him neutral on the dollar after being very negative on it since Jan. 2017.
“There’s times when … people seem to be so much on one side of the boat that I just really don’t believe the boat can sell that well, and I believe that’s where bitcoin is on the bullish side right now.”
However, he does see the potential for Bitcoin bulls to be proven right, which is if institutions get in. Prominent value investor Bill Miller also sees Bitcoin going higher if the ongoing demand outstripping supply continues on.
“The people that point out it has a terrific supply-demand dynamic, if indeed institutions get involved, they’re right,” Gundlach said. “That’s what can create these massive moves up in bitcoin.”