Jeffrey Gundlach, the chief executive of DoubleLine Capital and a well-known businessman who’s often referred to as the “bond king,” has recently predicted bitcoin could “make it to $5,000” to give investors an easy 25% gain.
Gundlach, who manages over $200 billion worth of assets and called the stock market’s monster sell-off in December of last year, made his prediction on a webcast where he spoke about a variety of assets. During the webcast, he predicted 2019 is going to be a volatile year for the markets, in which he expects higher yields to hurt stocks in a “tug of war.”
As for bitcoin, which he has previously called the “poster child for social mood and market mood,” Gundlach stated the cryptocurrency could soon jump 25% to $5,000, although he stressed his advice to investors is to “get the heck out of bitcoin.”
I don’t recommend anything with bitcoin, really … but if you really want to speculate, I think it could make it to $5,000. Talk about an easy 25 percent
According to CNBC, Gundlach also noted he expects the so-called yield curve to steepen this year. Institutional investors have been looking at yields as an inverted yield curve is seen as a signal a recession is coming in the near future, as historically once the market sees an inverted yield curves recessions came between a few months and years later.
He added that investors should now “use the strength we’ve seen in junk bonds” to get out of them, and that investors should look for companies with “strong balance sheets.”
Currently, bitcoin is trading at $4,070 after rising nearly 7% in the last two weeks, thanks to a significantly large move on January 6 that saw its price go from about $3,900 to about $4,100 in under an hour. According to CryptoCompare data its market cap is of $71.09 billion.
Gundlach’s thoughts on crypto seem to align with those of European Central Bank (ECB) council member Ardo Hansson, who recently stated cryptocurrencies are like a “fairy-tale story” and are “already collapsing.”
On the other hand, the Winklevoss twins Cameron and Tyler have recently revealed they believe the market cap of bitcoin could go over $7 trillion, as they believe BTC is “better at being gold than gold.”