Billionaire Jeffrey Gundlash Says He Won’t Buy a Crypto Dip Now, Here’s Why

Billionaire Jeffrey Gundlash Says He Won’t Buy a Crypto Dip Now, Here’s Why


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Tomiwabold Olajide

Bitcoin soared to a one-month high of $22,800 on Tuesday morning before plummeting

Billionaire investor and CEO of DoubleLine Capital Jeffrey Gundlach He says that he will definitely not be buying cryptocurrency at the moment given the current bear market conditions. He justifies this by saying that the Fed may go too far in its moves.

Investors’ concerns about the effects of the Fed’s monetary tightening efforts have decimated the $2 trillion market for cryptocurrencies.

A more aggressive path to raising interest rates will be needed to counter increasingly entrenched inflation, according to Nomura economists, who revised their forecasts for the Federal Reserve’s meeting in September from 75 to 100 basis points on Tuesday.

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Gundlach announced that he agrees with expectations, including expectations of a 20% drop in stock prices by mid-October, provided by Scott Minerd of Guggenheim.

After the higher-than-expected August CPI report on Tuesday, stocks slid as well, and bitcoin slid with it. On Tuesday, the cryptocurrency fell about 11%, reaching a low of $19,855. Since June 18, this has been the worst day for Bitcoin.

Previous profits reversed due to lower price. Bitcoin surged to a one-month high of $22,800 on Tuesday morning before falling. As Wall Street braced for more sharp rate hikes from the Federal Reserve, stocks saw a sharp fall in the wake of the market’s risk aversion mode.

Bitcoin is currently trading at $20,330 at press time.

Bitcoin May Not Have Hit a Bottom – Analyst

Cryptographic Analyzer Willy Woo He believes that Bitcoin is still far from bottoming out. In a series of tweets, the analyst notes that Bitcoin has yet to see an accumulation that matches previous lows. Also, in terms of maximum pain, the market hasn’t felt the same pain as previous lows.

He wrote: “In terms of maximum pain, the market hasn’t felt the same pain as previous lows. We’ve only hit 52% of the coins underwater so far. Previous lows were 61%, 64%, 57%.”





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