Jeffrey Gundlach, CEO of the investment management company DoubleLine, hinted that Bitcoin could outperform the US dollar over the long term.
In an interview on Wednesday on the show Halftime Report on CNBC, Gundlach said he believed People could buy Bitcoin (BTC) below $ 23,000 soon, given the likelihood of the crypto asset forming a head and shoulders pattern. Apparently he was referring to a “head” when the price of BTC peaked above $ 64,000 on April 13 and shoulders as the early January surge to past $ 40,000 and the recent drop to towards USD 30,000.
“I’m not a big believer in head-and-shoulders ceilings, but this one looks pretty convincing,” Gundlach said. “Going to neutral at $ 23,000 was obviously too early, but I have a feeling you’re going to be able to buy below $ 23,000 again.”
Although the billionaire said he was bullish on the cryptocurrency early last year, has always considered it a “highly speculative and volatile” asset, qualifying the current price chart as “very scary”. Although volatility would suggest both price rises and falls, Gundlach’s views on the US dollar beyond this year were apparently more bearish.
The CEO of DoubleLine speculated that both the US trade and budget deficits, which have probably increased as a result of the economic impact of the current pandemic, may cause the dollar to “fall quite substantially.” He added:
“In the short term, the dynamics have been and will continue to be in place for the dollar to be marginally or moderately stronger. In the longer term, I think the dollar [está] condemned”.
According to the MarketWatch US Dollar Index, The dollar was trading at 92.64 at the time of writing, rising approximately 0.25% in the last 24 hours. On the other hand, the price of Bitcoin has fallen by approximately 4% to reach $ 31,436.
Gundlach, known to many as the “King of Bonds” previously called Bitcoin a good hedge against inflation along with gold, but has raised concerns about the traceability of cryptocurrencies. DoubleLine currently has more than $ 135 billion in assets under management (none of which purportedly includes cryptocurrencies) and the CEO has said that he personally does not “believe in Bitcoin”.