Billionaire investor and CEO of Doubleline Capital, Jeffery Gundlach, said that he prefers Bitcoin to gold in the short term. Bitcoin rose above $40,000 unaffected by the Fed’s rate hike announcement.
The Federal Reserve, which received hints from the Bank of England on a 25 basis point rate hike in line with market expectations, decided to increase interest rates for the first time since 2018.
Reacting to this, Gundlach said that the Fed’s interest rate hike announcement on Wednesday has only followed the two-year Treasury, and they are far behind.
Gundlach said,,
“Most of the stocks have been sold and will go higher in the short term, but will topple with a few more rate hikes.”
This could be positive for the cryptocurrency industry, given the growing correlation between bitcoin and stocks.
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