Bitcoin is for speculators right now: King of bonds Jeffrey Gundlach

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DoubleLine founder and famous King of Bonds Jeffrey Gundlach admits he has never personally owned bitcoin (BTC-USD), although he was bullish on the benchmark crypto when he was around. $ 4,000.

“It’s just not in my DNA. I really made the connections in my career. I was pushed in there. The connections were a necessary evil and someone had to do it. But it did. Turns out that’s my culture of cowardice if you will. I’m not a dynamic investor at all. In fact, I’m sort of an anti-momentum investor and I think bitcoin is for dynamic investors, just like at this point i would say the FAANGS [stocks Facebook, Apple, Amazon, Netflix, Google] are for dynamic investors, ”Gundlach told Yahoo Finance in an interview inside his California domain.

While Gundlach liked bitcoin at much lower prices, he is more cautious about the asset class to start the year.

“I think bitcoin is for speculators right now. I would advise against bitcoin. I think you might have the opportunity to buy it – I think it’s now around $ 45,000, so around 20,000 $ less than highs. Maybe you should buy it at $ 25,000. “

Gundlach’s take on crypto comes as the space has come under significant selling pressure in recent months, mainly as traders record profits and wait for the next big catalyst.

At $ 46,065 as of this writing, bitcoin prices have fallen 33% from their highs of around $ 69,000 in early November 2021. The crypto sell-off has also spread to stocks of companies with disproportionate exposure to space.

Coinbase and Robinhood shares were down 7% and 20%, respectively, over the past month, according to data from Yahoo Finance Plus. The stock of Block (formerly known as Square) has fallen 15% over the past month.

Gundlach has provided a dose of investment wisdom to those who trade bitcoin (and the aforementioned FAANG stocks).

“I think it’s a bit like being a roulette player [momentum investing] which sort of has a strategy that works as long as it doesn’t hit zero or double zero. You make money and you earn money, and then eventually you get a double zero and you are busted. I think that’s what happens with dynamic investors. They tend to come out in a burst of glory, ”Gundlach added.

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Brian Sozzi is editor and presenter at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

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