Sentiment in the market has not been as bad as today and yesterday for a long time. The bitcoin (BTC) The price slumped past the key mark of $20,000, but according to billionaire and CEO of DoubleLine Capital, Jeffrey Gundlach, there is likely to be a lot more pain ahead for bitcoin investors.
Bitcoin crash to $10,000?
According to Gundlach, it would not be very strange to expect that the bitcoin price can crash by another 50% from here. He sets in a interview met CNBC that he cannot rule out a scenario where bitcoin crashes all the way to $10,000.
“The trend in crypto is clearly not positive. I mean, the pinnacle has been reached a long time ago. Remember, I was with you in July of last year, and Bitcoin was at $60,000 or something. And then it dropped to $30,000… It came back, but it looks like it’s being liquidated. So I’m not bullish on $20,000 or $21,000 on Bitcoin. I wouldn’t be surprised at all if it went to $10,000.”
Crypto crisis
According to Gundlach, the demise of some great cryptocurrenciessuch as Terra (LUNA), of course, are also a sign that a major crisis is coming within the world of cryptocurrencies and digital assets.
“We’ve had such a massive drop in parts of the stock market. Emerging market equities are down 15% so far. Most stocks have fallen. The Nasdaq is down 28%, Bitcoin is down 53% and 45% since the last meeting of the Federal Reserve. We’ve already seen some fringe blow-ups in parts of the crypto world and that could be a harbinger of some trouble.”
Gundlach is not exactly the only one analyst who believes that the bitcoin price can fall much further. Nevertheless, no one has a crystal ball, not even a billionaire like Jeffrey Gundlach. Only time will tell where a bottom is finally formed by the bitcoin price.
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