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Gundlach: Bet Against Bitcoin Today and 'You'll Make Money'

By    |   Wednesday, 13 Dec 2017 04:02 PM

Investment guru Jeffrey Gundlach apparently skeptical about all buzz surrounding the virtual currency bitcoin.

"We're starting to see the big rock of silly season" on bitcoin, Gundlach told CNBC.

"This is the kind of nutty stuff. The fact we're talking about it 24/7," the DoubleLine Capital CEO said.

He said there isn't much analysis behind bitcoin's rising price. "If you short bitcoin today, you'll make money," he said, conceding, "Can it go higher? Of course."

He said he doesn't own bitcoin and doubted the legitimacy of cryptocurrencies. Gundlach also mentioned digital currencies may get hacked some day. "I have no interest in this type of maniacal type of trading market," he said.

Gundlach isn't alone in his skepticism.

Federal Reserve Chair Janet Yellen called the digital currency bitcoin a “highly speculative asset” that “doesn’t constitute legal tender,” Bloomberg reported.

Bitcoin, the cryptocurrency, has surged about 17 times in value this year, prompting caution from central bankers around the world.

“Bitcoin at this time plays a very small role in the payment system," Yellen said Wednesday during a press conference in Washington, appearing to downplay it’s ability to affect wider financial markets. She added that bitcoin is “not a stable store of value.”

Meanwhile, bitcoin slumped by as much as $1,495 after a record-breaking few days that saw the digital currency move closer to the mainstream through the introduction of futures, Bloomberg reported.

Wednesday’s drop did trigger a volatility halt at Cboe, with futures trading paused for two minutes starting at 1:39 p.m. New York time. To calm wild swings, Cboe Global Markets Inc. can halt trading when the futures rise or fall 10 percent.

The price of the largest cryptocurrency by market value fell 4.9 percent to $16,395 at 2:02 p.m. in New York, after dropping much 8.7 percent, according to prices compiled on Bloomberg. That’s in line with Monday’s gain of 9.6 percent and minor in comparison to last Thursday’s 20 percent surge. Bitcoin is still up about 16-fold this year.

(Newsmax wires services contributed to this report).

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Investment guru Jeffrey Gundlach apparently skeptical about all buzz surrounding the virtual currency bitcoin.
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Wednesday, 13 Dec 2017 04:02 PM
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