Reuters
- Jeff Gundlach tweeted he's less bullish on gold and called bitcoin "The Stimulus Asset."
- Bitcoin has surged 80% in 2021 while gold has slumped.
- Gundlach turned neutral on bitcoin after it passed $23,000.
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"Bond King" Jeff Gundlach said in a recent tweet that he's less bullish on gold and called bitcoin "The Stimulus Asset," a reference to the cryptocurrency's rally amid a flood of cash pumped into the financial system from pandemic aid.
"I am a long term dollar bear and gold bull but have been neutral on both for over six months. Lots of liquid poured into a funnel creates a torrent. Bitcoin maybe The Stimulus Asset. Doesn't look like gold is," Gundlach tweeted.
The DoubleLine Capital LP chief has praised bitcoin in recent months for having a "terrific supply and demand dynamic," but also has been critical of its rapidly accelerating price. On January 11, he told CNBC he went neutral on bitcoin after it passed $23,000.
"I don't like bitcoin here, I don't like things that are up on a stilt like that," he said.
Bitcoin's price has more than doubled since his January comments and passed the $52,000 mark for the first time ever on Wednesday. The cryptocurrency has gained roughly 80% in 2021. During that same time frame, gold has slumped 6%.
Gundlach's comments are another sign that more investors are beginning to view bitcoin as a legitimate store of value and hedge against inflation. Historically gold has been investors' go-to inflation hedge, but crypto enthusiasts argue bitcoin's finite supply makes currency a stronger hedge than gold.
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See Also:
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- A crypto CEO breaks down why Tesla adding bitcoin to its balance sheet will create a 'domino effect' that lifts the cryptocurrency to $100,000 by the end of 2021 — and says Dogecoin is destined for a GameStop-style plunge
- Wall Street veteran Peter Kraus breaks down why investors should expect about a 10% to 15% market correction ahead — and shares his thoughts on the GameStop drama, SPAC mania, and bitcoin craze.
