In a recent interview with CNBC, an American investor Jeffrey Gundlach commented that it will not be a surprise if the Bitcoin price bottoms at the $10,000 mark.
According to Gundlach, it was apparent that the flagship currency would swiftly fall to the $20,000 level after bulls couldn’t maintain the $30,000 support. The investor believes that the trend seen in crypto right now is not favorable.
Given the significant price drop, the founder of DoubleLine Capital somehow doesn’t believe Bitcoin is a good investment at the moment. On Wednesday, billionaire Sam Zell expressed a similar view, saying that even though Bitcoin is trading at around $21,000, the currency is not cheap.
On June 15, the biggest crypto fell to $20,079 before finding a slight recovery phase. After that, Bitcoin began trading in the green, along with the major US stock indexes. This scenario was seen after US Federal Reserve Chairman Jerome Powell stated that large interest rate rises would be rare.
Interest Rate Raises By 75 Basis Point
The world’s strongest reserve bank raised the key interest rate by 75 basis points yesterday, marking this as the biggest since 1994. However, the Fed is still committed to restoring soaring inflation to the desirable 2% target.
For the time being, it looks that the Bitcoin price will go down considerably before hitting the bottom of the existing bear market. Guggenheim’s Scott Minerd said that the king currency’s price might shoot to $8,000.
According to veteran trader Peter Brandt, Bitcoin believers should wait for years before the flagship currency starts its journey towards another all-time high.
At the moment, Bitcoin is changing hands at $20,972 with an upswing of 1.83% over the last 24hrs.