Billionaire J. Gundlach skeptical of Bitcoin at $20k, says it could fall as low as $10k

Billionaire J. Gundlach skeptical of Bitcoin at $20k, says it could fall as low as $10k
2 weeks ago
3 mins read

While the cryptocurrency market is still trying to recover from the carnage it went through over the previous week, some investment experts are bearish on its flagship digital asset – Bitcoin (BTC), predicting it could drop a lot lower from where it is at the moment.

Specifically, billionaire and DoubleLine Capital CEO Jeffrey Gundlach believes Bitcoin could drop well below the $20,000 mark, stopping at no further than $10,000, as he stated in an interview with CNBC’s Closing Bell: Overtime published on June 15.

Answering the host’s question about predicting how low he thought Bitcoin was going, Gundlach explained:

“The trend in crypto is clearly not positive. It tapped out a long time ago. In July last year Bitcoin was up at $60,000 or something, then it dropped down to $30,000.”

The billionaire added:

“Ultimately it’s going to break down and then it should rally back but it keeps putting in – it looks like it’s being liquidated. 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.”

Senior commodity strategist: $20,000 is the bottom

It is worth noting that Finbold reported earlier on the opinion of Bloomberg Intelligence senior commodity strategist Mike McGlone expecting $20,000 to be the new bottom for Bitcoin. He also noted that the price of $20,000 should be viewed as the new $5,000.

According to McGlone, who has maintained a bullish stand on Bitcoin in the past:

“$20,000 Bitcoin may be the new $5,000. The fundamental case of early days for global Bitcoin adoption vs. diminishing supply may prevail as the price approaches typically too-cold levels. It makes sense that one of the best-performing assets in history would decline in 1H.”

However, he believes the asset would recover to emerge as a critical investment product, expecting it to hit $100,000 by 2025.

Meanwhile, crypto trading expert Ali Martinez stressed that Bitcoin will make significant gains if it manages to sustain a price above $21,630. Should this happen, the digital asset will be open for a rally towards $24,000. However, if it fails, Bitcoin will likely drop below $20,000, Martinez believes.

As things stand, Bitcoin is trading at $21,442, which is a 6% gain on the day, despite still losing 29.67% across the previous seven days, according to the CoinMarketCap data. 

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

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Ana Nicenko

Ana Nicenko has a plethora of knowledge and experience as a journalist covering the cryptocurrency and blockchain industries, having written for a variety of projects and organizations. Additionally, Ana has a master's degree in English Language and Literature. At Finbold, she reports news on the digital assets sector.