Gundlach tweeted he’d been a long-term gold bull and U.S. dollar bear, but has turned neutral on both. Bitcoin may well be “the stimulus asset,” he said, a reference to the cryptocurrency’s rally amid a wave of cash pumped into the financial system during the pandemic.
Gundlach’s comments are another sign the investment case for Bitcoin is winning over institutional money managers and possibly siphoning cash from the gold market. Historically, traders have turned to the precious metal as a way to play rising inflation expectations. But over the past year, it has been range-bound and gold exchange-traded funds have seen outflows.
I am a long term dollar bear and gold bull but have been neutral on both for over six months. Lots of liquid poured… https://t.co/LFyiE4pMrH
— Jeffrey Gundlach (@TruthGundlach) 1613622397000
Bitcoin, however, has captivated investors from billionaire Elon Musk to hedge fund moguls including Alan Howard and Paul Tudor Jones. Prices have quadrupled over the past year and shot through $52,000 this week. The digital token slipped 2% on Thursday to trade around $51,317.