The bitcoin pullback wipes out billions in crypto

DoubleLine Capital CEO Jeffrey Gundlach on Monday warned that bitcoin could be getting overheated after its massive run in recent months.

“I don’t like bitcoin here. I don’t like things that are up on a stilt like that,” the so-called Bond King said on CNBC’s “Halftime Report.” “Bitcoin, to me, is now sort of in bubble territory in terms of the way it’s been acting.”

Gundlach’s comments Monday come as the price of bitcoin was down sharply to under $33,000 per digital coin. The cryptocurrency on Friday hit a record high of nearly $42,000 before it began to pull back. Bitcoin, however, is still up over 75% in the last month and more than 380% since April 1.

The major rally in bitcoin has come against the backdrop of the coronavirus pandemic, with governments across the globe unleashing massive stimulus efforts to aid ailing economies. That has stoked inflation concerns for some investors, and bitcoin has been one asset to which they have turned.

The increased adoption of bitcoin generally by institutional investors has been another factor credited with helping propel its ascent. And some people, such as prominent value investor Bill Miller, believe the digital coin has further room to run — while conceding its volatility is likely to remain.

“Bitcoin’s total supply is growing less than 2% a year and it’s obvious by the price that the demand is growing much, much faster than that,” Miller told CNBC on Friday. “As long as that obtains, bitcoin is likely to go higher and perhaps considerably higher.”

Gundlach acknowledged there is a potential for bitcoin bulls to be proven correct.

“The people that point out it has a terrific supply-demand dynamic, if indeed institutions get involved, they’re right,” Gundlach said. “That’s what can create these massive moves up in bitcoin.”

In January 2020, Gundlach predicted near-term upside for bitcoin, potentially as high as $15,000 per coin in the year.

The investor has taken a more negative view in other instances. For example, in December 2017, Gundlach said, “If you short bitcoin today, you’ll make money.” At that point, bitcoin was trading above $16,000 per coin. It would go on to fall dramatically, losing well over half its value by December 2018.

Gundlach, in explaining his current stance toward bitcoin, said Monday he was concerned investors have become too optimistic.

“I think all of these things are kind of baked in right now, and the trade location is poor,” he said. “Even the dollar, I’ve been very negative on the dollar since January of 2017 but I actually turned neutral on the dollar a little bit lower than where we are right now ... just because these things seem like they’ve gotten too deeply into the consensus narrative.”

“There’s times when ... people seem to be so much on one side of the boat that I just really don’t believe the boat can sell that well,” Gundlach added, “and I believe that’s where bitcoin is on the bullish side right now.”

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[thuypham]

Bitcoin has never failed not minding the current fluctuation in price, rather giving people the chance to make the right investment into btc, most of the wealthy investors started there investment during this period so why not start your investment now .

[superdom]

I wish they would just say, they don’t know.

[dvgains]

Still up over 600% in ethereum and over 300% in bitcoin in the past year 🤷🏻‍♂️ this dip is nothing

[xAkNDx]

It crashed because I FOMO'D in smfh, you're welcome if you bought the dip lol

[piotrjasielski]

So we're back to last week's highs?

What a shock!

[DigitalAssetNews]

This is all true. Actually we lost over 100 billion. It’s a good day to buy everything on sale!

[vincem]

IT didn't wipe out anything. Somebody cashed out heavy LOL

[fartunahmed]

speaking from experience you can only make a profit if you're using a working program, don't be a scapegoat to the Bear this year, get information and invest

[anayasaanvi]

Regardless of which market you choose to trade, every potential investors simply must have a strong set of mathematical and analytical skills.
expert Norwood Bryan Likewise, the ability to analyze date quickly will further benefit you in the bitcoin world. Natural, there’s a lot of math involved in Bitcoin trading, but this is often presented in forms of daunting technical charts, indicators, patterns.

[Rich-yjub]

One bitcoin - $34, 982.00
🤭🤣😆😂 Come on!

[stevenf]

The major challenges investors face may range from controlling impulsiveness to the frail of compulsion. Most newbies and would-be investors often undermine and most often neglect the importance of technical analysis with regards to trading. Technical analysis overly predicts the movement of asset prices regardless of what is happening in the wider or broader market. Essentially, the process involves studying the paths of a particular asset movement in the past so as to establish a sustainable pattern that can be used to predict future movements. I would encourage investors out there to trade with the little they have or copy trade alerts from a professional trader. I have been using Andrew Charles Weber's trading Signals and Strategy Designer since the last bear market, increasing my portfolio daily. With his strategy/signals, i have been able to grow my portfolio to 13 btc with my initial 0.8 btc.

[chrisbacon]

"out of the blue" what is he talking about, we have been expecting a pullback for a while now..

[kiwimcozzie]

this is part of the game guys wait and see whats up ahead! This is POSITIVE and totally NORMAL for Cryto.

[shirleynelson]

Investing into bitcoin right now is the best time for any bitcoin investors.

[Kennypeagler]

Bought at 8k, sold at 41k, will reinvest shortly. No complaints here.

[OneBlurredEdge]

20% - 40% dips are not uncommon in crypto. Pull up a Bitcoin chart on trading view and look at the volatility from 2016 to December 2017. There were 6 dips ranging 29% - 38% on the way up to 17k from 1.2k. If you look at the chart they show on this video the dips are not easy to see because that was when the price per bitcoin was much lower.

[vincentlawson]

Despite the economic crisis, this is a Still a good time to invest in Gold and Crypto

[shayneduncan]

Coinbase goes down every time major market moves happen. You can bet on it.

[keishatexas]

I had a slight issue with verification, Bitvest24 demanded a clear picture of my details as opposed to the ones I kept uploading. A tiny bit stressful, but I got it done when I uploaded a crisp clear picture and it got updated right away. That's the only issue I had, and the customer service personnel was very understanding and responsive

[georgegomezgomez]

This happens when Morgan Stanley get involved in anything