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Jeffrey Gundlach allowed bitcoin at $10,000

Head of DoubleLine Capital Jeffrey Gundlach declaredthat he would not be surprised by the fall of bitcoin to the level of $10,000.

According to him, the rapid decline in the price of digital gold to levels near $20,000 was obvious after the bulls did not keep quotes above $30,000.

“The trend is clearly not positive,” Gundlach said.

He called it inappropriate to buy bitcoin at the current price.

On May 11, digital gold failed the $30,000 level. After about a month of trading near the sign mark, on June 13, the cryptocurrency rate fell below $23,000.

On June 15, the price of bitcoin fell to $20,225 (on Bitstamp).

The asset reacted with moderate growth to the increase of the key rate range by the US Federal Reserve System (FRS) by 75 basis points at once. However, after the rate approached $23,000, it turned down again.

At the time of writing, Bitcoin is trading around $21,200. The market capitalization of the cryptocurrency market is less than $1 trillion, which is comparable to January 2021.

Hourly BTC/USD chart on the Bitstamp exchange. Data: Trading View.

Earlier, the opinion that bitcoin should be sold now in order to buy it cheaper later was expressed by well-known cryptocurrency critic Peter Schiff. He considers a test of the long-term support level around $5,000 likely. In May, he named another mark for the bottom – $ 8,000.

At the same time, Guggenheim Partners investment director Scott Minerd also allowed bitcoin to decline to this level. Bestselling author of Rich Dad Poor Dad and entrepreneur Robert Kiyosaki has named another bottom for digital gold at $17,000.

Galaxy Digital CEO and founder Mike Novogratz, on the other hand, is convinced that the price of the cryptocurrency will stay above $20,000.

In early June, Arthur Hayes, co-founder of the BitMEX crypto derivatives exchange, said that Bitcoin quotes had reached the current bottom. In April, the entrepreneur predicted the price would fall to $30,000 by the end of the month.

Kevin O’Leary, an investor and star of the Shark Tank television show, can only determine whether the cryptocurrency market has bottomed out if there is a serious negative event.

This could be the likely bankruptcy of the crypto-lending platform Celsius, which has fallen into a difficult financial situation. Adam Levitin, professor of law at Georgetown University, believes this development is almost inevitable.

Recall that in January, Gundlach predicted a fall in the bitcoin rate to $25,000 due to the tightening of the Fed’s monetary policy. At that time, he called this mark “a good level to open a long position in digital gold.”

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