Billionaire investor and DoubleLine Capital CEO Jeffrey Gundlach has voiced skepticism about the crypto industry's credibility and stability.
What Happened: In an interview on CNBC on Sep.19, Gundlach compared crypto strategies to past financial products like Portable Alpha and 130/30 strategies, noting that such trends appear every few years and he personally avoids them.
"I am not a crypto person at all," he said, highlighting that Bitcoin (CRYPTO: BTC) has underperformed gold this year despite significant gains.
While acknowledging that despite people making a fortune out of it, he believes Bitcoin is not a very good investment, and it has lost its momentum. "I just don't think that it's gonna serve the purposes that are hoped for," he added.
Gundlach also expects high volatility and potential sharp corrections for Bitcoin and Ethereum (CRYPTO: ETH).
Also Read: Bitcoin Crashes To $112,000 As ETH, XRP, Dogecoin Get Hit By Over $1 Billion In Long Liquidations
Why It Matters: Once bullish on Bitcoin in 2021, Gundlach's stance has shifted since 2022.
He previously suggested BTC could act as a "stimulus asset," but then warned that "the trend in crypto is clearly not positive," even cautioning that Bitcoin could fall back to $10,000 under adverse conditions.
Additionally, Gundlach indicated that a rate cut may be coming at the next Federal Reserve meeting, given low 2-year Treasury yields, signaling continued macroeconomic influence on markets.
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