Billionaire “Bond King” Jeffrey Gundlach warns investors against pouring money into Bitcoin (BTC), saying that the crypto king has lost steam.
In a new CNBC interview, the DoubleLine Capital CEO says that Bitcoin and Ethereum (ETH) will probably witness steep corrections if other asset classes like stocks pull back.
He adds that gold is outperforming Bitcoin this year, suggesting that BTC’s touted use case as a store-of-value asset may be falling short.
“I’m not a big crypto person at all, and I notice that Bitcoin has underperformed gold this year, and that’s pretty remarkable, given how everything’s up so much. So I don’t really think that Bitcoin is a very good investment. I know that people have made a fortune in it, but it’s lost its momentum, and I just don’t think that it’s gonna serve the purposes that are hoped for.”
Gundlach also says he has no plans to take part in crypto treasury strategies.
“Every few years, there’s something that comes up that’s kind of a gimmick. And, you know, I remember Portable Alpha. I remember [130/30] strategies. I think that a lot of these things are sort of gimmicky. And so I wouldn’t be involved in that at all.”
At time of writing, Bitcoin is trading at $114,809, while ETH is worth $4,374.
