TL;DR Breakdown:
- DoubleLine Capital CEO says Bitcoin is currently in bubble territory.
- The statement follows the recent drop in BTC, down to the $30,000 range.
Many cryptocurrency market participants were caught unaware following the recent drop in Bitcoin (BTC) price from $42,000 to around $30,000. This 25 percent drop in BTC also brought a shockwave for the crypto market, as many coins were seen bleeding in value during that period. One significant evidence is the global crypto market cap that dropped from the $1 trillion levels to the $800 billion levels within two days.
While the dipping crypto market was seen as an opportunity to stack more coins cheaper, many people thought the cryptos, especially Bitcoin, are exhausted from the rally which began in recent months. Hence, it could be the start of a larger correction in the crypto market. The CEO of DoubleLine Capital, Jeffrey Gundlach, is having this same view for Bitcoin due to the massive drop in the crypto’s price.
DoubleLine Capital CEO thinks BItcoin is exhausted
According to Gundlach’s statement on CNBC’s “Halftime Report,” the leading cryptocurrency has seemingly overheated from the rallies in the past months. He thinks that Bitcoin is due for a heavy correction and added that he doesn’t like BTC at this current state. “I don’t like things that are up on a stilt like that. […] Bitcoin, to me, is now sort of in bubble territory in terms of the way it’s been acting,” DoubleLine Capital CEO said.
It’s worth noting that Gundlach has a supportive stance for Bitcoin. However, the statement follows the sudden decline in the cryptocurrency. Although he mentioned that Bitcoin investors are becoming too optimistic about the digital currency, he also does think that BTC has the potential to surge significantly in price. “The people that point out it has a terrific supply-demand dynamic, if indeed institutions get involved, they’re right. That’s what can create these massive moves up in bitcoin.”
Bitcoin in recovery path to $40,000
After dropping to the $30,000 level yesterday, the cryptocurrency is gradually pushing up again to $40,000. Currently, BTC is trading at $35,361 on Coinmarketcap. An analyst, Willy Woo, had blamed the massive decline in Bitcoin price on Coinbase, which suddenly went down. The downtime stopped lots of buys in the market, which consequently after price indices.
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