“Bond King” Jeffrey Gundlach has had a change of heart on bitcoin.
Gundlach’s change of stance comes on the heels of bitcoin’s dizzying rise from $10,000 to $52,000 seen in the past 4.5 months.
The cryptocurrency has charted a 10-fold rally in the past 11 months, offering a significantly higher return than gold amid the massive inflation-boosting monetary and fiscal stimulus delivered by authorities worldwide to counter the coronavirus-induced economic slowdown. The precious metal reached a record high of $2,075 in August 2020 and has been trending lower ever since.
Gundlach noted he had been neutral on gold for the last six months, while formerly a “gold bull.” He previously said bitcoin was in “bubble territory” when it rose past $23,000 in early January.
In December, JPMorgan analysts said that bitcoin’s rising popularity could have a bearing on gold’s price.