Jeffrey Gundlach Correctly Predicted Bitcoin Would Retreat To $20K: Here's His Next Call On The Crypto

Zinger Key Points
  • Billionaire investor Jeffrey Gundlach on Wednesday warned that Bitcoin's plunge may not be over.
  • This isn't the first time Gundlach has made bold calls about the crypto market, and Bitcoin in particular.

Bitcoin BTC/USD has fallen more than 50% since the start of the year and one investor says he wouldn't be surprised to see it cut in half again.

What Happened: Billionaire investor Jeffrey Gundlach on Wednesday warned that Bitcoin's plunge may not be over.

"It looks like it's being liquidated," Gundlach said Wednesday on CNBC's "Closing Bell: Overtime."

"So I'm not bullish at $20,000 or $21,000 on Bitcoin. I wouldn't be surprised at all if it went to $10,000," he said.

Bitcoin is down 53% year-to-date and significantly more from its peak of roughly $69,000 in November.

"The trend in crypto is clearly not positive," Gundlach said.

When Bitcoin fell below $30,000, it looked like it would trade down to $20,000 fairly quickly, he said: "And it did." Now it looks like another breakdown could be imminent. 

Related Link: Michael Saylor Was Bearish On Bitcoin In 2013: What He Said

Why It Matters: This isn't the first time Gundlach has made bold calls about the crypto market, and Bitcoin in particular.

Last year, during an interview with CNBC, Gundlach called the Bitcoin chart "scary."

When the world's oldest cryptocurrency hit the $60,000 level, it became exhausted, Gundlach said, noting at the time that the Bitcoin chart had formed a massive head-and-shoulders top. 

He told CNBC that investors would likely have an opportunity to buy Bitcoin around the $23,000 level again — and here we are.

BTC Price Action: Bitcoin is up 3.49% over a 24-hour period at $22,413.60 at press time Wednesday evening, according to data from Benzinga Pro.

Photo: mohamed Hassan from Pixabay.

Posted In: CNBCJeffrey GundlachCryptocurrencyNewsShort IdeasTop StoriesMarketsMediaTrading Ideas

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