“Bond King” Jeffrey Gundlach has had a change of heart on bitcoin.

Gundlach – CEO of DoubleLine Capital, an investment firm with more than $130 billion in assets under management – now says bitcoin could be a better bet than gold.

Gundlach, who’s previously said, “I don’t believe in bitcoin,” tweeted Thursday that “bitcoin may be the stimulus asset. It doesn’t look like gold is.”

Source: @TruthGundlach

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.

Bitcoin has continued to rise, helped along by publicly listed companies such as Tesla, a Fortune 500 firm, and MicroStrategy, which have adopted bitcoin as a reserve asset in the past few months.

Also read: Ether Looks Overleveraged as Cryptocurrency Hits New High Over $1,900

In December, JPMorgan analysts said that bitcoin’s rising popularity could have a bearing on gold’s price.

While crypto community expect more corporates to follow Tesla’s decision to purchase bitcoin, Wedbush Securities and JPMorgan believe widespread adoption will remain elusive for some time.

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