Bitcoin: bond king gonzalac issues bubble warning Wall Street’s “fool” gold

The sharp correction comes as Jeffrey gundlach, CEO of dual line capital and known as the “new king of debt”, warned on Monday that bitcoin may have become overheated after the frenzied rise in recent months. “I don’t like bitcoin at its current level. I don’t like that kind of thing that’s high up there, “gunlak said. “In my opinion, bitcoin is now a bit of a bubble in terms of its performance.” In January 2020, gunlak had predicted that bitcoin would rise in the short term, and could rise to as high as $15000 in 2020. Now, he worries that investors are becoming too optimistic. “Sometimes It seems that there are too many people on the same side of the boat, so I don’t believe such a boat can sail well, “he said. “This is bitcoin’s current bull position.” However, gonlak also acknowledged that bitcoin bulls could prove right. “It has been pointed out that its supply and demand dynamics are very good, and if institutions do get involved, they are right.” He said. “That’s why bitcoin prices have soared.” The comments come as bitcoin prices have fallen below $33000. On Tuesday, the cryptocurrency rose to $34787 so far. Bitcoin prices hit an all-time high of nearly $42000 on Friday, before falling back. However, bitcoin is still up more than 75% in the past month and more than 380% since April 1 last year. The bitcoin surge came in the context of the new coronavirus pandemic. Governments around the world have launched massive stimulus measures to help troubled economies. This has exacerbated inflation concerns among some investors and prompted them to switch to assets such as bitcoin to hedge against inflation. The increasing adoption of bitcoin by institutional investors is seen as another factor driving the appreciation of bitcoin. Bill Miller, a well-known value investor, believes that bitcoin still has further upside potential, while acknowledging that its volatility may continue to exist. “The total supply of bitcoin is growing by less than 2% a year, and it is clear from the price that demand is growing much faster than supply.” Miller said on Friday. “As long as this continues, bitcoin is likely to go up, or even significantly.” When bitcoin was sold off, the empty voice of cryptocurrency began to appear in the market. Peter Schiff, a senior Wall Street prophet and chief economist and strategist at Euro Pacific Capital, said in a media interview on Monday that bitcoin is gold for “fools” and that anyone who buys bitcoin will eventually become a fool. Schiff explained that bitcoin could be sold after its recent surge, but only to buyers who didn’t know it was a “scam.”. Those who have not sold bitcoin are “under the illusion” that bitcoin will one day become cash. Bitcoin, he points out, will never become money. “It doesn’t fit the definition of money. Money should be a commodity. It needs to have its own practical value, not just the use and the means of exchange. ” Bitcoin investors should be prepared to lose all their money in the future, the financial conduct authority warned on Monday. “FCA recognizes that some companies are offering investments in crypto assets, or loans or investments related to crypto assets, which are expected to bring high returns, but if consumers invest in these types of products, they should be prepared to lose all their money.” The FCA warns that consumers are unlikely to be protected by the financial public assessment service (FOS) or financial services compensation mechanism (FSCs) if there are any problems with investments related to encrypted assets, and they should be vigilant. Matt Maley, chief market strategist at Miller Tabak + Co., believes there may be a significant correction in bitcoin in the future. “Bitcoin can still have a 30-60% reduction, and it will happen more than once.” However, the analyst believes that in the long run, there is still room for a substantial increase in bitcoin. [Financial Association] this article does not constitute an investment proposal. The stock market is risky and investment should be cautious.

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