Chief Executive Officer of DoubleLine Capital, Jeffrey Gundlach, who also manages over 200 billion dollars in assets has announced a tip for the speculators who speculate the price of bitcoin could rise to a 5000 dollar mark. According to the reports of a top media channel, the veteran in the Wall Street who has earned a nickname “Bond King” for his customized expertise in his investments in bonds, made the call on the internet which titled as ‘Just Markets.’ He said that “ I do not recommend anything with cryptocurrencies, such as bitcoin, but if you want me to speculate, I think it could make it to $5,000. Talk about an easy 25 percent.”
Dip Before a Surge?
Although Jeffrey Gundlach has not offered a timeline on when this will be going to materialize, during the first week of January, the prices of bitcoin have already fallen by more than 7 percent, since the prices have hit a high monthly of around 4,200 U.S. dollars. As of now, the price of cryptocurrency is trading below 3,800 U.S. dollars, has already tested a low of Bitstamp of 3,776 U.S.dollars. Gundlach has stated that volatility will increase in 2019 while speaking of other cryptocurrency asset classes. According to Gundlach, the stocks are going to hurt users, as a result of the higher bond yields due to the Federal Reserve’s tightened agenda spoils sport. Urging the investors, Gundlach asked to dump all the junk bonds as he raised some concern over the increasingly corporate and government debt in the United States Of America. One should have to use his strength that they have seen earlier in junk bonds as a gift and got out of them. Investors need to go into strong balance sheets to survive the zigzag of 2019.
Reports and data gathered from the charts of Goldman Sach, it is included in the bond king’s web forecast, the federal government of the United States has debt as a percentage of the GDP now exceeds the household debt as a percentage of GDP. The United States corporate debt about GDP is now at a record high though it is still lower to the U.S. household debt as a percentage of the gross domestic product. Although there have been a lot of market predictions for the year ahead so far, what makes the bond king’s expectations noteworthy with regards to bitcoin and traditional assets is his accuracy, if his forecast for 2018 is anything to go by. On December 24, in the year 2018, ZeroHedge suggests that some of Gundlach’s 2018 predictions that came true include the massive United States’ stock market has to sell-off which saw the massive falling of S&P 500 index. However, the index has, appreciated by 2 percent since the beginning of the year, 2019.