Bond tycoon Jeffrey Gundlach said he would prefer Bitcoin (BTC) over gold for the short term. Gundlach thinks that investors should gradually invest in emerging market stocks such as the cryptocurrency market. Here are the reasons…
Jeffrey Gundlach says he will buy Bitcoin over gold
Billionaire investor and CEO of Doubleline Capital Jeffery Gundlach, Bitcoin (BTC) is trading near the lower end of its range, while it is close He said that he will buy Bitcoin over gold in the future. Bitcoin rose to $41,717 on March 16 as investors were unaffected by the Fed’s rate hike announcement. Having received hints from the Bank of England on a 25 basis point rate hike in line with market expectations, the Fed decided to raise interest rates for the first time since 2018. Reacting to this, Gundlach said the Fed’s rate hike announcement on Wednesday was only “tracking” the two-year Treasury and “far behind”.
“Conditions will positively affect the cryptocurrency market”
Doubleline Capital CEO attributes this to the current selling pressure of the stock market:
Stocks are oversold and will rise higher in the short term, but will topple with a few more rate hikes. Given the growing correlation between Bitcoin and stocks, this could be positive for crypto in the near term.
Bitcoin is often compared to gold, with its proponents arguing that it is a hedge against inflation and an alternative investment strategy in times of crisis. Billionaire investor and cryptocurrency mogul Mike Novogratz, for example, compares Bitcoin to diamonds and gold. He cites as a reason why Bitcoin is not controlled by the government. He also predicts that the largest cryptocurrency could reach $500,000 in five years. Apple co-founder Steve Wozniak has some laudatory words for Bitcoin, describing the largest cryptocurrency as “pure gold.”
Bitcoin price action
Bitcoin, the largest cryptocurrency by market value, is currently trading in the $41,000 band. It slightly trimmed its gains after hitting $41,717 on March 16. Due to rising inflation, the Fed is under increasing pressure to keep consumer prices in check. Fed Chairman Jerome Powell said at a press conference that the central bank will shrink its balance sheet at the upcoming meeting of the Federal Open Market Committee (FOMC). You can reach the statements of Jerome Powell, which we have transferred as Kriptokoin.com, here.
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