Billionaire investor Jeffrey Gundlach, CEO of DoubleLine Capital, has revealed that while he is still a long-term dollar bear and gold bull, sees bitcoin as a better bet after turning neutral on both the U.S. dollar and gold.
In a tweet, Gundlach said bitcoin may well be the “stimulus asset,” referencing the cryptocurrency’s surge over the last few months amid a wave of cash being pumped into the financial system in response to the effects of the COVID-19 pandemic on the economy.
The billionaire’s words show that the bitcoin investment case is winning over institutional investors as Bloomberg reports, and may even be siphoning funds out of the gold market. Historically, traders turn to the precious metal in a bid to hedge against higher inflation and currency debasement.
Over the past year, however, gold has been range-bound and its exchange-traded funds have been seeing outflows. Bitcoin, on the other hand, moved from little over $11,000 in October of last year to a new all-time high above $50,000 this year.
Gundlach’s tweet came as U.S. Treasury yields rose following the release of weekly jobless claims data. Per CNBC the yield of the benchmark 10-year Treasury note climbed to 1.311% while the yield on the year-year Treasury bond dipped to 2.094%. At the same time, the S&P 500 Index has dropped by nearly 1%, while the Nasdaq is down 1.17%.
Over the last 24 hours, bitcoin is up 1.31% and is currently at $52,050. As reported, data shows the number of bitcoin whales has reached a new all-time high, as there are now 94,000 BTC addresses holding at least $1 million in bitcoin, and data shows that the number of addresses holdings between 1,000 and 10,000 BTC has been rising.
While the number of bitcoin whales has increased partly because the price of the cryptocurrency has been surging, whales have also been accumulating BTC, as research from data analytics platform Whalemap has spotted that addresses holding between 1,000 and 10,000 BTC – between $41 million and $500 million – have been growing.
Featured image via Unsplash.