Billionaire Jeffrey Gundlach says he wouldn’t dip into crypto now, here’s why
Bitcoin rose to a one-month high of $22,800 on Tuesday morning before falling
Billionaire investor and CEO of DoubleLine Capital Jeffrey Gundlach says he would certainly not buy cryptocurrencies at the moment given the current bearish market conditions. He reasons this with the fact that the Fed can go too far in its moves.
Downloads of Binance’s app in India jumped to 429,000 in August, the highest this year and nearly triple that of fellow CoinDCX. Daily volumes on key India-based platforms are down over 90% since a 1% tax on crypto transactions took effect in July.
— Wu Blockchain (@WuBlockchain) 14 September 2022
Investors’ fears about the impact of the Fed’s monetary tightening measures led to a $2 trillion market rout for cryptocurrencies.
A more aggressive path of rate hikes will be needed to counter increasingly entrenched inflation, according to Nomura economists, who revised their forecast for the Fed’s September meeting from a 75 to 100 basis point hike on Tuesday.
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Gundlach stated that he agrees with the predictions, including the prediction of a 20% drop in stock prices by mid-October, made by Guggenheim’s Scott Minerd.
After the August consumer price index report came in higher than expected on Tuesday, stocks also fell, and Bitcoin plunged along with them. On Tuesday, the cryptocurrency fell by around 11%, hitting a low of $19,855. Since June 18, this has been the worst day for Bitcoin.
Previous profits have been reversed by the falling price. Bitcoin rose to a one-month high of $22,800 on Tuesday morning before falling. As Wall Street braced for more aggressive rate hikes from the Federal Reserve, stocks experienced a dramatic decline following the market’s risk-off mode.
Bitcoin is currently trading at $20,330 at press time.
Bitcoin May Not Have Bottomed – Analyst
Cryptanalyst Willy Woo believes Bitcoin is still far from reaching a bottom. In a thread of tweets, the analyst noted that Bitcoin has yet to see an accumulation that matches previous lows. Also in terms of maximum pain, the market has not felt the same pain as previous bottoms.
Have we hit rock bottom?
I like to quantify accumulation as coins moving away from sellers to acute buyers.
Red line tracks this. Black arrows are all the same height.
So far, we have not had the levels of accumulation synonymous with previous lows. pic.twitter.com/mbFvWGptze
— Willy Woo (@woonomic) 14 September 2022
He wrote: “In terms of maximum pain, the market has not felt the same pain as previous lows. We have only reached 52% of coins underwater so far. Previous lows were 61%, 64%, 57%.
