Gundrach predicts the massive collapse of bitcoin 3 years ago, “Current bitcoin price bubble

Input 2021.01.12 11:54

Billionaire Geoffrey Gundrach, who is called the king of bonds, was worried about the overheating of Bitcoin investment.

On the 11th (local time), Gundrach appeared on CNBC’s’Half Time Report’ and diagnosed, “Considering the price movement, bitcoin is in a bubble.”

Gundrach previously advised that in December 2017, when the price of 1 bitcoin was $16,000 in December 2017, “Sell Bitcoin and make profits.” After that, Bitcoin plunged in half by December 2018.

Gundrach’s remark came after the bitcoin price plummeted that day. Bitcoin fell to $32,576 this Monday after peaking at close to $42,000 per bitcoin on Friday last week. However, Bitcoin rose by 75% throughout December last year and 380% from April 1 of last year.

The reason for the recent rise in the price of bitcoin is the economic stimulus measures that governments around the world have introduced in response to the novel coronavirus infection (Corona 19).

Some investors, worried that inflation will occur if liquidity is oversupplied due to large-scale stimulus measures, turned to Bitcoin. Along with this, institutional investors’ purchase of bitcoin also led the uptrend.

There is also an opinion that the price of bitcoin will rise further in the future. Celebrity investor Bill Miller said in an interview with CNBC that “the total supply of bitcoin is growing by less than 2% per year, while demand is rising much faster than that,” and there is still room for cryptocurrency to rise.

Gundrach was concerned that some investors were overly positive about the market outlook. “If institutional investors participate, there could be a strong bullish market in the short term,” he said, but expressed concern that “the current opinions are overly concentrated on one side of the double (Bitcoin bullish).”