CEO of DoubleLine Capital and noted gold bull, Jeff Gundlach seems to have had a change of heart about Bitcoin. Gundlach, who previously stated “I don’t believe in Bitcoin” has now tweeted something different.
Jeff Gundlach tweeted on Wednesday. “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.”
Though he noted that he has been neutral on gold for six months. Gundlach has been previously known as a “gold bull”. Previously saying Bitcoin is “bubble territory” as recently as January when the crypto rose past $23,000.
Many would view these comments as yet another sign of Bitcoin continuing to win over institutional investors. Potentially taking money away from the gold market.
Historically, traders have turned to gold as a way to play rising inflation expectations. Over the past year it has been range-bound and gold exchange-traded funds have seen outflows.
Over the last 11 months, Bitcoin has charted a 10-fold rally and offered significantly higher return than gold. Amidst the inflation-boosting monetary and fiscal stimulus delivered by authorities around the world to counter the coronavirus-induced economic slowdown.
Gold reached an all-time high of $2,075 in August of 2020, but has been trending down ever since. Bitcoin meanwhile, has been on the rise, helped in large part by investments from major publicly listed companies.
Most notably, Tesla, headed by Elon Musk invested $1.5 billion into Bitcoin, leading many to believe other major companies will soon follow suit. Additionally, other hedge fund moguls such as Alan Howard and Paul Tudor Jones have gotten into the crypto game. MicroStrategy adopted bitcoin as a reserve asset in the past few months as well.
Back in December, JPMorgan analysts suggested that bitcoin’s rising popularity could have a bearing on gold’s price and it sounds as if others may think the same.