Jeffrey Gundlach, CEO of Doubleline Capital and a billionaire investor, says he would buy Bitcoin over gold in the near term as the lead asset trades near the low end of its range. On March 16, Bitcoin reached a high of $41,717 as investors were unconcerned by the Fed’s announcement of a rate rise.
The Federal Reserve opted to raise interest rates for the first time since 2018, following the lead of the Bank of England, by raising rates by 25 basis points, as market predictions suggested.
In response, Jeffrey Gundlach stated that the Fed’s announcement of an interest rate rise on Wednesday was just them “following” the two-year Treasury, adding that they were “way behind.”
“Stocks are oversold and will go higher in the short term, but will roll over once a couple more rate hikes are in place,” stated the CEO of Doubleline Capital. Given the increased link between Bitcoin and stocks, this might be beneficial to cryptocurrency in the short run.
Bitcoin is frequently likened to gold, with supporters claiming it is an inflation hedge and an alternative investment strategy during times of crisis.
Billionaire investor and cryptocurrency entrepreneur Mike Novogratz, for example, compares Bitcoin to diamonds and gold. He mentions the fact that Bitcoin is not governed by the government as one of the reasons.
He also forecasts that the largest cryptocurrency will reach $500,000 in five years.
Apple co-founder Steve Wozniak also praised Bitcoin, characterizing the largest cryptocurrency as “pure-gold,”
The largest cryptocurrency, Bitcoin, is presently selling at $40,710 on the Bitstamp platform. After reaching a high of $41,717 on March 16, it has modestly reduced gains. The Fed is under increasing pressure to keep consumer prices under control as inflation rises.
Fed Chair Jerome Powell stated during a news conference that the central bank will shrink its balance sheet during the forthcoming Federal Open Market Committee meeting (FOMC).
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