Gold bulls change their attitude! "New Bond King": Bitcoin may be better than gold

Jeffrey Gundlach, CEO of DoubleLine Capital and the so-called "new bond king," has changed his mind about Bitcoin. He said on Thursday that Bitcoin may be a better trade than gold.

Gundlach has previously said, "I don't believe in Bitcoin," and on Thursday he said on social media: "Bitcoin may be a stimulus asset. It doesn't look like gold."

Gundlach's change of stance comes as the price of Bitcoin has surged from $10,000 to over $52,000 in the past few months, setting new highs recently.

Bitcoin prices have surged over the past 11 months, with the cryptocurrency delivering significantly higher returns than gold, which hit a record high of $2,075 in August 2020 and has been trending downward since then, amid massive monetary and fiscal stimulus measures implemented around the world to combat the economic slowdown caused by the coronavirus pandemic.

Gundlach noted that he has been neutral on gold for the past six months, having previously been bullish on the metal, and said bitcoin was in “bubble territory” when it rallied to over $23,000 in early January.

Bitcoin’s continued rally has been aided by publicly traded companies such as Fortune 500 companies Tesla and MicroStrategy, which have used Bitcoin as a reserve asset over the past few months.

JPMorgan analysts said in December that the growing popularity of Bitcoin could be linked to the price of gold.

Although it is generally expected in the cryptocurrency field that more companies will follow Tesla's decision to buy Bitcoin, investment banks Wedbush and JPMorgan Chase believe that it will still be difficult for Bitcoin to be widely accepted for some time. (Sina Finance)