Renowned gold advocate Jeffrey Gundlach has shifted his view and now favors Bitcoin
Jeffrey Gundlach, CEO of Los Angeles-based investment firm DoubleLine Capital, previously stated he did not believe in cryptocurrencies. However, based on his latest tweet, the prominent investor appears to have changed his stance. Gundlach drew a comparison between gold and Bitcoin, suggesting the latter may now be the better investment.
Although long known as a gold bull, Gundlach now describes Bitcoin as a “stimulus asset” and considers it superior to the yellow metal and other traditional safe-haven assets. Historically, he has favored physical investments over non-physical ones like Bitcoin and the U.S. dollar, even calling the digital asset a “bubble” earlier this year.
On CNBC’s Halftime Report in January, he said: “I don’t like Bitcoin here. I don’t like things that stand on such stilts. Bitcoin, as it stands now, is a kind of bubble sector.”
At that time, Gundlach advised investors to avoid the crypto asset, warning it could overheat during its rally. Yesterday, however, he revised his view via tweet.
“I am a long-term dollar bear and gold bull, but have been neutral on both for over six months. A lot of liquidity poured into a funnel creates a stream. Bitcoin can be THE stimulus asset. Does not look like gold.”
Gundlach did not provide detailed reasons for shifting his preference toward the crypto asset. Many crypto community members interacting with his post believe the recent Bitcoin rally may have been the turning point. This week Bitcoin made headlines again after reaching a new all-time high near $52,600.
The leading cryptocurrency began the year strongly and has recently seen significant inflows from institutions seeking to hedge against rising inflation with the asset. Before Bitcoin’s ascent, investors commonly regarded gold as the superior inflation hedge. Over the past ten months, however, Bitcoin has outperformed the physical metal.
Bitcoin suffered a sharp setback in March of last year, dropping to roughly $4,000, but recovered by year-end and launched an impressive rally that pushed it to record highs early this year. At the time of reporting in the original article, Bitcoin was trading around $51,141.10.