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The CEO of Doubleline Capital and billionaire Jeffrey Gundlach believes that even with the threat of an impending recession, it is impractical to buy bitcoin at the current price.
Jeffrey Gundlach, also known as the “King of Bond”, described Bitcoin as a speculation tool. Referring to recent changes in the price of the first cryptocurrency, he expressed his opinion on investing in digital assets.
“Now I would not recommend investing in bitcoin. Maybe you should buy it for $ 25,000, ”he said.
Gundlach stated that he has never invested in digital currency because it is contrary to his nature: “It just isn’t in my DNA. Bonds fit my culture of cowardice. I’m not an impulse investor at all, and in fact I think bitcoin is only for impulsive investors. “
He also warned that a slowdown in the global economy should be expected this year or next year. Gundlach stressed that the likelihood of a recession in the second half of 2022 is not zero. If the US Federal Reserve System (FRS) raises interest rates and cuts its bonds, it could affect asset prices and lead the economy into recession.
“I think that the bond market is already showing quite a few signs of a recession, and by 2023 it seems quite likely. I don’t think that many Fed officials, economists and investors approve of the fact that the economy continues to sag due to lower and lower interest rates, so I think that the Fed is enough to raise rates four times and you will see many signals of a recession. “.
According to Huobi Research last year, a change in policy from the US Federal Reserve could negatively affect the cryptocurrency market. The publication of the minutes of the recent meeting of the Federal Reserve System, which speaks of a gradual departure from soft policy from March 2022, caused panic in the market and led to a depreciation of bitcoin.
Quantum Fintech founder and managing partner Harry Yeh last year urged cryptocurrency investors to be guided not only by the desire to protect capital from inflation, but also to consider their benefits for the portfolio.
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