DoubleLine Capital’s CEO and co-founder Jeffrey “Bond King” Gundlach said Bitcoin has been in “bubble territory” ever since it broke $20,000.
“Bitcoin, to me, is now in bubble territory based on how it’s been acting. The people that point out that it has a terrific supply-demand dynamic if indeed institutions get involved, they’re right about that,” he told CNBC.
Gundlach describes how last year he had two convictions: that the dollar is going down and bitcoin is going up. “When bitcoin got to about $23,000, I thought it started looking like the mania.”
He said he went neutral on the decentralized currency after it broke the $20,000 milestone. Once bitcoin reached $40,000 then dropped nearly 20% on Monday, Gundlach commented on the coin’s behavior.
“It’s volatile as all get-out. I don't like bitcoin here. I don't like things that are up on a stilt like that," Gundlach said. “I’m not really a contrarian, but there are times when people seem to be so much on one side of the boat that I don’t believe the boat can sail that well.”