DoubleLine Capital chief executive officer and American billionaire, Jeffrey Gundlach, has warned investors against investing in bitcoin at the current state of the cryptocurrency.
Gundlach’s words carry weight in the financial market, reason he was named “The Fifty Most Influential” by Bloomberg in 2012, 2015, and 2016.
The 62-year-old, who was described as the “Money Manager of the Year” in 2013 by Institutional Investors, and nicknamed “The New Bond King” by Barron’s in 2011, hinted that bitcoin still has more falling to do.
Bitcoin investment is down -7.81% year-to-date according to crypto aggregator, Coindesk, and it currently trades at $42,544.05 per coin, rising by 0.95% in the last 24hour.
The most popular cryptocurrency has sold for as low as $41,299.51 and as high as $43,106.05 during the same period, but Gundlach advised investors to be patient for bitcoin to fall to its All-time low of 2022.
The fund manager projected bitcoin’s value will depreciate to $25,000, and that’s when investors should buy the asset used as a store of value in the investment community.
“At the present moment, I would advise against bitcoin … Maybe you should buy it at $25,000.” Bitcoin.com quoted him to have said in a report on Wednesday.
But the billionaire, worth $2.2 billion, has no investment in cryptocurrency because he believes bitcoin and altcoins are for momentum investors, whereas, he’s anti-momentum, and prefers to invest in bonds.
“Bonds fit my culture of cowardice. I’m not a momentum investor at all, and in fact I’m sort of an anti-momentum investor, and I think bitcoin is for momentum investors only.” Gundlach said.
He stated that bitcoin is “just not in my DNA.”, explaining that cryptocurrency is “for speculators.” a sentiment shared by the Central Bank of Nigeria (CBN) governor, Godwin Emefiele.
The CBN chief had said no notable investors would want to associate with bitcoin and other cryptocurrencies, although, credible investors like founder of Tesla and world richest person, Elon Musk, Twitter founder, Jack Dorsey, Mastercard, PayPal and Visa have invested in cryptocurrency.
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