Bitcoin hit 'bubble territory' after $20,000, says billionaire Jeffrey Gundlach

Bitcoin • January 11, 2021, 6:07PM EST
The Block

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.”

About Author

MK Manoylov has been a reporter for The Block since 2020 — joining just before bitcoin surpassed $20,000 for the first time. Since then, MK has written nearly 1,000 articles for the publication, covering any and all crypto news but with a penchant toward NFT, metaverse, web3 gaming, funding, crime, hack and crypto ecosystem stories. MK holds a graduate degree from New York University's Science, Health and Environmental Reporting Program (SHERP) and has also covered health topics for WebMD and Insider. You can follow MK on X @MManoylov and on LinkedIn.

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